The board of Shinhan Financial Group's holding company has overhauled its principles for appointing independent directors to expand the pool of candidates with practical experience in the financial industry. It will use a Board Skills Matrix to systematically evaluate candidates' expertise. The group will also strengthen AI-based internal controls at group level.

Shinhan Financial said on Aug. 30 it held a board roundtable on Aug. 27 at the Grand Hyatt Seoul, inviting institutional investors from South Korea and overseas. The board roundtable is a regular event where the group exchanges views with key investors at home and abroad on its mid- to long-term strategy and corporate governance.

About 50 institutional investors from South Korea and overseas took part online and offline. Six independent directors, including board chair Soo-geun Kwak (곽수근), attended along with key executives including Shinhan Financial Chairman Ok-dong Jin (진옥동).

Institutional investors held questions and discussions focusing on the group's mid- to long-term direction to enhance corporate value, its shareholder return plan, and evaluation and compensation systems for the board and management.

The board explained that, as part of its key activities in the first half, it has newly revised this year's principles for appointing independent directors. The key is to expand appointments of people with practical experience in the financial industry. It plans to strengthen board expertise by using the new Board Skills Matrix to screen the candidate pool.

It will also strengthen its internal control system. Shinhan Financial built a group-wide AI-based internal control platform in June, the first in the sector, to support frontline operations in fulfilling management obligations. It also plans to raise the effectiveness of internal controls by requiring improvements for shortcomings through the group's internal control committee.

Board chair Kwak said, "Establishing sound corporate governance and responsible management is the core of the corporate value enhancement plan."

Chairman Jin stressed, "We will work to ensure this leads to sustainable growth based on investors' diverse opinions and advice."