Poor results to cause CEO replacement

Deputy Premier and Minister of Finance and Economy Jin Nyum said Tuesday that the government would exercise its shareholder`s right to replace chief executive officers (CEOs) of government-led financial holding companies if they fail to achieve soundness and profitability targets.

In a press conference, Jin said the government would include this stipulation in a memorandum of understanding (MOU) to be concluded with the CEOs of financial holding companies, who were named Monday, before the companies are officially inaugurated.

Noting that the government did not intervene in the selection of CEOs, the deputy premier said, ``Instead, the government requested that Hana Bank chairman Yoon Byung-Chul, who was appointed to take charge of financial holding companies, single out bank presidents armed with progressive outlooks and superior business capability.``

On the bankruptcy of Korea Industrial Development, he said, ``It testifies to the fact that ailing companies that fail to make basic self-support efforts will be ousted from the industry in accordance with market principles.``

On a government plan to map out a ten-year vision for the Korean economy along with scholars and researchers, Jin said, ``Unlike past projections based on fundamental statistics like national income, the vision will include contents concerning projected quality of life and environmental changes, where the Korean economy stands, and which direction we have to go.``

[Yonhap]