Shinhan Financial Group Chairman Cho Yong-byoung was convicted for his involvement in recruiting malpractices, but he is expected to maintain his post as he spared the prison.
A Seoul district court handed Wednesday the 63-year-old chief executive a six-month prison term but suspended the sentence for two years.
Shinhan Bank, the iconic unit of Shinhan Financial, allegedly hired children of its executives and high-ranking bureaucrats in the mid-2010s, although their scores were not high enough. Back then, Cho took charge of the Seoul-based lender.
The court admitted that Cho did not make specific orders to recruit them, but concluded that he unlawfully peddled influence by notifying their application to its personnel officials.
Saying that he would appeal to a high court, the chairman of the country’s top financial group showed his disappointment because he has protested innocence.
From the perspective of Shinhan, however, the business bellwether in terms of profit has got rid of legal risks because it does not have to find a new leader.
Shinhan Financial recommended Cho as the only candidate for the chairmanship last month, and he is supposed to officially start his second three-year term after the shareholders’ meeting in March.
In case he was imprisoned, Shinhan’s CEO recommendation committee said that the group would have to find his replacement.
“Over the past 18 months, we have faced legal and governance risks, but they eased to some extent. It is safe to say that Cho will win his reappointment,” a Shinhan official said.
“Hereafter, we will put forth efforts to protect financial consumers and improve internal control. Cho also will be able to focus on management as his legal burden is reduced.”
This article is provided by UPI News Korea. _ ED.