Corporate Governance

Board of Directors

  • IBK’s Board of Directors (BOD) is comprised of six members: the Chair and CEO, the Deputy CEO, and four outside directors.
    IBK’s Chair and CEO is appointed by the President of the Republic of Korea on the recommendation of the Chair of the Financial Services Commission (FSC). The Deputy CEO is appointed by the FSC for a three-year term, based on a recommendation from the Bank’s Chair and CEO. The outside directors, who together must form the majority of the Board of Directors, are appointed by the FSC on the recommendation of IBK’s Chair and CEO. The recommendations must be based on the candidates’ expertise and experience in such areas as business management, economics, accounting, law, and/or the small- and medium-sized enterprise sector.

Major activities of the Board of Directors

  • IBK’s Board of Directors votes on the important issues relating to the Bank’s business operations. In 2016, the Board held twelve meetings, passed fifty-two resolutions, and reviewed thirteen reports. The following are notable meetings: the second meeting, which was held on March 3 to vote on the investment limits for crowdfunding by the Cultural Enrichment Fund; the eighth meeting, held on July 14, to vote on the revision of the Bank’s entire Internal Control regulations; and the eleventh one, held on November 30, to receive the report of the Bank’s management concerning the business plans for 2017.
  • In 2017, the Bank’s Management Board and Board of Directors will continue to play a leading role in maintaining the reputation for open, transparent, prudent, and principled management practices. They will also be engaged in developing positive and constructive relationships with all the Bank’s stakeholders.

Subcommittees of the Board of Directors

IBK’s Board of Directors includes three subcommittees:
  • the Board of Directors Governance Committee, the Management Compensation Committee, and the Risk Management Committee. The goal of all three is to promote open, transparent, prudent, and principled operations. To ensure their independence, the Management Compensation Committee consists solely of outside directors, while the Risk Management Committee is chaired by an outside director.
Board of Directors Governance Committee:
  • Helmed by the Bank’s Chair and CEO, the Board of Directors Governance Committee consists of a total of six executives and outside directors. The Committee’s primary functions include reviewing plans for improving the operational efficiency and functions of the Board and its various subcommittees, as well as serving as the main communications channel with the Bank’s shareholders and other stakeholder groups for the sake of their interest protections and improvements. After the Committee has narrowed down the number of candidates for outside director posts, it submits the revised list to the CEO, who subsequently recommends the names of the candidates to the FSC. The Committee also recommends candidates for senior-level executive posts, based on the recommendations made by the CEO. Finally, it studies the agenda items that have been submitted by the Board of Directors.
Management Compensation Committee:
  • Comprised of four outside directors, this Committee is tasked with reviewing the amount of compensation paid to executive directors and group heads, and assessing their performance evaluations.
Risk Management Committee:
  • The Risk Management Committee is composed of a total of three executives and outside directors. Chaired by an outside director who is appointed by the Board of Directors, the Committee devises and approves risk management policies that enable the Bank to maintain sufficient capital adequacy ratios. It is also charged with managing the various types of risks that may arise in the course of the Bank’s everyday business operations.

Ownership Structure (As of December 31, 2016)

    (No. of Shares, %)

  • Overseas Remittance
    Shareholder Common Stock Preferred Stock Total Ownership
    ROK Government 290,109,219 44,847,038 334,956,257 50.90%
    Korea Development Bank 10,490,000 46,915,282 57,405,282 8.7%
    Korea Eximbank 8,501,153 6,210,000 14,711,153 2.3%
    Sub-Total 302,338,802 7,972,320 400,311,122 61.5%
    Others 250,878,443 - 250,878,443 38.10%
    (Foreign investors) (95,285,180) - (95,285,180) (17.02%)
    Total 559,978,815 97,972,320 657,951,135 100.00%
    • * The preferred shares held by KDB and KEXIM are redeemable convertible preferred shares, or RCPS.