CORPORATE GOVERNANCE
Industrial Bank of Korea (IBK) realizes balanced decision-making based on transparency
and accountability and operates a governance structure that considers the interests of all stakeholders. It enhances corporate value, drives sustainable growth, and further strengthens its role as a trusted financial partner through sound cooperation between the board and management.
- COMPOSITION OF THE BOARD OF DIRECTORS
- As of the end of December 2024, IBK’s Board of Directors (BOD) is the bank’s main decision-making body, consisting of the Chairman & CEO, Deputy CEO, and three outside directors. As the chair of the board, the Chairman & CEO is appointed by the President of the Republic of Korea on the recommendation of the chairman of the Financial Services Commission (FSC). The Deputy CEO and the outside directors are appointed by the FSC on the recommendation of the IBK Chairman & CEO.
- BOD ACTIVITIES
- IBK’s BOD determines the bank’s critical business issues. In 2024, the BOD convened 11 meetings to deliberate on or receive reports concerning 71 agenda items. In February, the first BOD meeting resolved the “Proposal for Issuance of Contingent Convertible Bond (CoCo Bond) Subject to Write-Down” to compensate for the reduction in the capital amount and stabilize its BIS ratio. Later, at the tenth BOD meeting in November, the BOD deliberated on and approved a proposal to establish and invest in the SME and Mid-sized Company Growth Support Private Equity Investment Company (provisional name). The decision paves the way for the provision of venture capital to promising SMEs and mid-sized companies with excellent technological capabilities while, as a policy bank, playing a leading role in the governmental policies of enhancing the competitiveness of SMEs and mid-sized companies. In 2025, IBK remains committed to fostering responsible management and exemplary governance through its board activities, with the aim of remaining a leader in ESG management. Furthermore, the bank is working tirelessly to foster constructive relations with all stakeholders and establish an advanced governance structure.
- BOD COMMITTEES
- IBK’s BOD activities are supported by five subcommittees, the Steering Committee, Compensation Committee, Risk Management Committee, ESG Committee, and Internal Control Committee, to promote sound management. This year, the Internal Control Committee was incorporated into the BOD Committees to further strengthen the BOD’s internal control responsibilities. Additionally, to ensure their independence, the Compensation Committee is fully comprised of outside directors, while an outside director chairs the Risk Management Committee, ESG Committee, and Internal Control Committee.
- Steering Committee
- As of the end of 2024, the Steering Committee consisted of the bank’s Chairman & CEO, Deputy CEO, and two outside directors. It is responsible for assisting the efficient and active operation of the BOD and communicating with shareholders and other stakeholders. The Committee recommends candidates for outside director positions to be proposed by the CEO to the FSC. The Committee also appoints executives recommended by the CEO and deliberates on and approves other matters deemed necessary by the BOD.
- Compensation Committee
- The Compensation Committee is comprised of three outside directors. It deliberates on and approves compensation system for executive officers, as well as employees in charge of financial investments, performance evaluations and fringe benefits of executives, and other matters deemed necessary by the BOD.
- Risk Management Committee
- The Risk Management Committee consists of two outside directors and the bank’s Deputy CEO. Chaired by an outside director who is appointed by the BOD, the Committee manages risks arising in the course of the bank’s ordinary business activities. It also develops and approves risk management policies to maintain an appropriate capital adequacy level.
- ESG Committee
- The ESG Committee consists of two outside directors and the Deputy CEO. Chaired by an outside director who is appointed by the BOD, the Committee manages and oversees the bank’s ESG management, such as reviewing the bank’s strategic directions and performance of ESG management.
- Internal Control Committee
- The Internal Control Committee consists of two outside directors and the Deputy CEO. Chaired by an outside director who is appointed by the BOD, The Committee establishes the basic policies and strategies for the bank’s internal control, and reviews and evaluates whether the internal control measures and reports by the CEO and executives are being properly executed.