The head of the Financial Supervisory Service yesterday urged the government not to intervene in conglomerates' governance systems, a day after the Fair Trade Commission criticized local conglomerates' shareholding practices as opaque.
At a regular briefing session yesterday, Yoon Jeung-hyun, governor of the financial watchdog, said that the corporate governance system is not "something to be criticized at the government level."
"Corporate governance should be judged in line with the global standards, not the local standards," Mr. Yoon said.
His comments came a day after the Fair Trade Commission released information about the governance systems of 47 major conglomerates, denouncing the companies' founding family members for wielding voting rights in their affiliates that exceed their stakes.
According to the commission, the founding families currently control 60 percent of the affiliates under the 47 conglomerates, even though they do not own one single share of such affiliate firms.
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