On Apr. 3, SK FSS,SK KFB issued measures for compliance reporting.
SK FSS and SK KFB jointly formulated measures to promote compliance reporting.
Follows SK FSS Mar. 2025 issued unfair stakeholder transaction cases, see #248222.
Outline of Measures
Change the name to compliance reporting from whistleblowing, expand reporting subjects to anyone including former employees and outsiders other than employees.
Expand reporting targets to unlawful or unfair instructions or requests from all executives and employees, instead of unlawful or unfair instructions from superiors.
In order to strengthen protection of whistleblowers, diversify reporting reception channels such as external channels or mobile-based anonymous reception windows.
Prevent disclosure of whistleblowers' identities in reward payment and deliberation processes, detail the types of disadvantageous actions against whistleblowing, place burden of proof re showing it is not a disadvantageous action on person taking action.
Actively consider exemption/reduction of disciplinary actions for compliance reporting.
Expand scope of investigations regarding the compliance reporting duty to additional embezzlement, fraud, breach of trust, violations of the Act on real name financial transactions and confidentiality from financial accidents of KRW 300mn or more.
Create a relief fund system to compensate whistleblowers for damages/costs; clarify reward calculation criteria, raise the maximum payout limit, set a minimum reward.
Future Plans
SK KFB will reflect measures in Financial accident prevention guidelines in Apr. 2025, implement them from Jul. 1, 2025 after banks revise internal regulations by H1 2025.
SK FSS will periodically inspect the status of the compliance reporting system, ensure that establishment and operation of the compliance reporting management system are reflected in the management duties of CEOs under responsibility structures.
Continue to organize training on the compliance reporting system for bank employees.
Ensure that banks continue to inspect and evaluate the adequacy of their compliance reporting management system and improve any deficiencies where identified.
Create a corporate culture of mutual checks and balances as well as strict accountability and fair consequences by improving internal disciplinary standards.
Regulators
SK FSS; SK KFB
Entity Types
Bank
Reference
PR 4/4/2025; PR 4/3/2025; Law 20894, 4/1/2025;
Functions
Actuarial and Valuation; Compliance; C-Suite; Exams; Financial; Fraud; HR; Legal; Operations; Risk; Training
