Hyundai Motor received a warning from the Financial Supervisory Service due to lack of internal control

Hyundai Motor received a warning from the Financial Supervisory Service due to lack of internal control: COMPANY / Reporter Kim Jisun / 2023-01-25 06:00:20

This article is translated by AI company Flitto and Alhpa Biz neural machine translation technology

From left, Hyundai Motor Chairman Chung Eui-sun and Financial Supervisory Service Director Lee Bok-hyun

[Alpha Biz=(Chicago) Reporter Kim Jisun]Hyundai Motor received attention from financial supervisory authorities due to lack of internal control. It is recommended to manage management risks thoroughly.

According to the Financial Supervisory Service on the 23rd, the Financial Supervisory Service recently released such a "disclosure of sanctions." The Financial Supervisory Service inspected Hyundai Motor's financial complex group and notified them of four management precautions and eight improvements to strengthen the internal control organization and reporting system, risk concentration and internal transaction-related management. Hyundai Motor was designated as a financial complex business group last year. Management precautions and improvements are administrative guidance measures that require caution or autonomous improvement of financial companies.

According to the Financial Supervisory Service, Hyundai Motor's financial complex group operated some overseas affiliates subject to internal control standards and risk management standards, excluding preliminary review of high-risk internal transactions, intensive risk and transfer risk management. In response, the FSS called for detailed management measures.

The Financial Supervisory Service called for the strengthening of the division and reporting system between internal control teams and the operation of an early warning system in response to crisis situations in relation to overlapping internal control tasks of Hyundai Motor's financial complex business groups.

The Financial Supervisory Service advised Hyundai Motor's financial complex business group to thoroughly operate an internal control council and reflect internal control and risk management standards of financial complex business groups in the internal regulations of its financial companies.

It also called for strengthening monitoring of risk limits, improving the work of verifying submitted data when calculating the ratio of capital adequacy, and strengthening the management of limits for intensive risk management.