[Photo by Lee Seung-hwan]
South Korea’s financial regulators will introduce legal obligations for executives of financial companies to hold them accountable for internal control responsibilities. The move is part of a proposed legislation by the Financial Services Commission (FSC), which is set to take effect in July.
Under the proposed legislation, financial executives must submit documents outlining their work duties and responsibilities to the financial authority within seven days of the board of directors’ decision.
The legislation also outlines specific deadlines for submitting these documents based on each segment of the financial sector. Financial investment companies with assets less than five trillion won ($3.7 billion), insurers with assets below five trillion won, credit funds with assets of five trillion won or more, and savings banks with assets over 700 billion won will have a two-year grace period from the regulation’s implementation. Other financial entities will have a three-year grace period before submitting their documents.
By Yoo Joon-ho and Han Yubin
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