Lee Eog-weon to Pursue Reforms After Criticism of Retired Financial Holding Company Executives as "Shadow Advisers" [2026 Parliamentary Audit]

Former executives move to affiliates as advisers or consultants and receive compensation
Lee Chanjin: "Discussing inclusion in corporate governance reform plan"

Financial Services Commission Chairman Lee Eog-weon said on the 22nd that he would pursue institutional reforms to address the practice of retired executives at financial holding companies moving into advisory positions at their affiliates and receiving compensation.

Financial Services Commission Chairman Lee Eokwon answers lawmakers' questions during a comprehensive parliamentary audit of the Financial Services Commission and other agencies at the National Assembly on Oct. 22, 2026. Photo by Yoon Dongju.

At a parliamentary audit of the Financial Services Commission and the Financial Supervisory Service by the National Assembly's Political Affairs Committee that day, Lee was asked about the need to reform the system for appointing retired executives of financial holding companies as advisers. He said, "We are continuing to review matters concerning chief executive officers (CEOs) and executives in connection with the corporate governance reform plan. We will also look into measures to improve the way advisory positions are operated."

His comments followed criticism from Kim Yongman of the Democratic Party of Korea, who raised concerns about the practice of retired executives at financial holding companies moving to advisory or consulting positions at affiliates and receiving compensation. According to Kim, from January 2023 to September 2023, a total of 38 executives from six financial holding companies moved, after retiring, to positions such as advisers or special research fellows at group affiliates or research institutes. He took issue with the fact that their compensation details are not disclosed because they are not classified as executives under the Act on Corporate Governance of Financial Companies.

Lee Chan-jin, governor of the Financial Supervisory Service, also said he would pursue reforms to the relevant system.

"In connection with the governance reforms being prepared by the Financial Services Commission, we will seek further discussions and improvements to address areas concealed in 'shadow form,' such as advisory and consulting roles," Lee said. "We are discussing these matters at the working level so they can be included, and they may be incorporated at the final stage."

This content was produced with the assistance of AI translation services.