Woori Financial Chairman Yim Jong-yong said Thursday that he would take responsibility for any issues for which he should be held accountable regarding a substantial amount of inappropriate loans extended to relatives of the lender’s former chief.
Yim also said he would seek consent from all executives of the group and its affiliates to register the credit information of their relatives in order to prevent similar incidents from occurring in the future.
Yim made the remarks during his appearance before the National Assembly audit, becoming the first executive among major financial holding companies to attend such a session.
“I feel a deep sense of responsibility for the loss of public trust in Woori Financial due to the unfair loan case,” Yim said.
His appearance attracted significant attention, as the lender has been at the center of controversy following findings by the Financial Supervisory Service, the country’s financial watchdog. The agency discovered that Woori Bank extended loans totaling 61.6 billion won ($46 million) from April 3, 2020, to Jan. 16 of this year to relatives and associates of former Chairman Son Tae-seung.
Yim explained that he is currently focused on promoting organizational stability, enhancing internal controls and driving cultural innovation in response to the incident.
“After registering the credit information of all executives’ relatives, we will establish processing guidelines for loan transactions and implement a strict management process, including 추천 post-funding appropriateness reviews,” he said. “Additionally, we will create an internal control committee for ethics composed solely of external directors.”
He emphasized that it should not stop with merely implementing systems or regulations, noting that corporate culture needs to change, while continuous education is essential o achieve this transformation.
When asked by Rep. Lee Kang-ill of the main opposition Democratic Party of Korea (DPK) if he intends to resign, Yim responded: “If I have done something wrong and need to take responsibility, I will do so.”
Meanwhile, Kim Byoung-hwan, chairman of the Financial Services Commission, called on the Assembly to make a swift decision on whether to implement, postpone or abolish a new financial investment income tax.
He then reaffirmed the government’s stance on abolishing the new tax.
“The uncertainty surrounding the financial investment income tax needs to be eliminated quickly, regardless of its actual impact,” Kim said during the Assembly audit. “I hope that the National Assembly will make a decision quickly.”
Rep. Kang Myoung-gu of the ruling People Power Party said, “If the tax is implemented, investors’ funds could quickly flow out, leading to a market contraction. Please ensure the financial authorities pay special attention to abolishing the tax.” In response, the FSC chairman said, “We will do so.”