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| Shinhan Financial Group Chairman Jin Ok-dong speaks during a meeting with employees of Shinhan Life Insurance at the insurer's headquarters in Seoul, Monday. Courtesy of Shinhan Financial Group |
By Lee Min-hyung
Shinhan Financial Group Chairman Jin Ok-dong pledged to enhance its internal control system by adopting a management responsibilities map at the earliest possible date.
"All the work processes should be justified by thorough an internal check system for sustainable growth of the group," Jin said during a meeting with employees of Shinhan Life Insurance, Monday.
The documented guidelines are used to improve the internal control systems of major financial companies in developed countries, such as the United Kingdom and Singapore. C-level executives should abide by them to improve transparency of management activities.
"We should move forward to become a more trustworthy financial group by building another level of internal control systems that are safer than demanded by society amid a series of scandals surrounding sales of botched investment products," Jin said.
The remark reflected growing public concerns over repeated financial fiascos sparked by mis-selling of risky investment products and a series of embezzlement scandals involving employees of financial firms.
Last month, financial authorities decided to introduce rules on the responsibilities map. Under the decision, leaders of financial firms should write up a map for their company that specifies responsibilities that each executive should assume.
For instance, the leader of a financial firm should be responsible for any false statements on the map. Based on large commercial banks here, a group of 20 to 30 executives are forecast to be included in the list of executives on the map.
"Shinhan will benefit from the responsibilities map from a long-term viewpoint, even if adopting the rule is feared to weaken our sales capacity, as all the work processes will become stricter following the introduction of the map," a spokesman at Shinhan said.
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