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Biz News Korea(Eng)
FTC uncovers 181 cases of unregistered owner family members as executives
- Collected
- 2023.12.27
- Distributed
- 2023.12.28
- Source
- Go Direct
FTC
Unregistered executives, who receive salaries without serving on the board, are a subject of concern as they can exercise various powers while avoiding legal responsibilities.
The FTC found that 136 companies had at least one family member of the top executive serving as an unregistered executive.
Among the companies, Jungheung Construction.Co. had the highest number with 10, followed by Eugene Corp. (8), HiteJinro Co. (7), and DB Group (5). In terms of percentage, HiteJinro had the highest proportion at 46.7 percent.
Of the positions held by family members of the top executive as unregistered executives, 57.5 percent were in positions subject to regulations against embezzlement. Additionally, the number of listed companies (20.6 percent) was about 6.2 times higher than that of non-listed companies (3.3 percent).
“There are still many companies where the family members of the top executive enjoy authority as unregistered executives without bearing responsibility as registered executives,” said an FTC official. “There is still significant room for improvement in terms of the practical operation of institutional mechanisms.”
By Lee Jin-han and Yoon Yeon-hae
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