A responsibility structure chart clarifying the accountability of financial company executives is set to be implemented on July 2 of this year, with 53 out of 67 financial investment companies and insurance firms subject to the structure participating in a pilot operation.
The Financial Services Commission and the Financial Supervisory Service announced on the 13th that 27 institutions, including 19 securities firms with total assets of 5 trillion won or more and 8 asset management companies, as well as 26 life insurance companies with total assets of 5 trillion won or more and 10 non-life insurance companies, will participate in the pilot operation.
The financial authorities decided to provide incentives by not holding companies accountable under the governance law if internal control management obligations are not fully performed during the pilot operation period. Additionally, pre-consulting services will be offered to companies participating in the pilot, including inspections and advice regarding the responsibility structure chart, and if violations are detected and corrected internally, sanctions will be reduced or waived.
The responsibility structure chart aims to clearly define the internal control responsibilities of financial company executives, including the chief executive officer (CEO). It was created to address concerns that accountability is unclear, which limits the identification of causes and subsequent measures in the event of financial accidents.