Authorities propose 75% shareholder approval threshold for financial chiefs seeking 3rd terms

Financial holding company chiefs seeking a third consecutive term would need approval from at least 75 percent of voting rights represented at a shareholders' meeting under a proposed reform plan aimed at tightening oversight of financial companies, according to government sources, Tuesday. The Financial Services Commission (FSC) briefed lawmakers from the ruling Democratic Party of Korea on the proposal on Monday. The plan aims to gradually tighten approval requirements for financial group chiefs seeking reappointment. For an initial appointment, at least two-thirds of the nomination committee members would have to approve the candidate. The candidate would then need a majority of votes at the shareholders' meeting, and those votes must represent at least 25 percent of all shares issued by the company. The requirements would become stricter to secure a second term. At least three-quarters of the nomination committee members would have to back the candidate's reappointment, while shareholder approval would require at least two-thirds of voting rights represented at the meeting and suppor