Nepotism Favors

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The government has launched a probe into alleged employment favors of nepotism reported at public firms. Investigation by the prosecution has found that so-called hereditary succession of employment has also taken place at Shinhan Bank. The bank created a separate list for the children of senior bank employees, and selected them in much higher numbers than regular job candidates.

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In 2014, a certain candidate applied for a job post during an open recruit at Shinhan Bank. The individual received a DD grade over "lack of drive and consideration" and did not pass the working-level interview stage. But the personnel manager raised him to a grade of BB allowing him to make the final cut. Why? One of his parents was a staff member of the bank. This hiring favor known as hereditary succession of employment was systematically managed. If children of incumbent senior officials of the bank applied for positions, they were separately managed on a special list, and their scores were fabricated. 14 candidates were hired this way. Their parents held a range of titles including branch managers and higher positions of the banking group. 5.48 percent of the candidates who were children of current executive employees were recruited in the latter half of 2016. This figure is five times higher than the 1.1 percent success rate among regular candidates. Prosecutors believe Shinhan Bank maintained this five percent range acceptance rate in every hiring season. Among the 28 senior officials who made job-related requests include former chief of Shinhan Financial Group Ra Eung-chan and current chief Cho Yong-byoung. Prosecutors have referred to put to trial four figures including Cho over charges of obstruction of business.