This composite image shows the headquarters of the country's largest financial groups — KB, Shinhan, Hana and Woori. Korea Times file

Major financial groups are seeking to carry out large-scale reshuffles of outside directors at their respective shareholders' meetings next month, as part of efforts to enhance internal regulatory controls, according to industry officials, Friday.

The move follows a series of financial crimes and wrongdoings in the banking sector, which have seriously damaged the credibility of both the companies and the industry.

However, it remains uncertain whether such measures can be effective, as outside directors, regardless of the industry, have long been criticized for merely serving as rubber stamps.

Correspondingly, experts suggested that financial groups should take more practical measures, such as enforcing transparency and rooting out irregularities within their workplaces.

KB Financial Group, the country's top financial holding company, has recommended two candidates — one from academia and the other from the accounting industry — to replace former Industrial Bank of Korea (IBK) President Kwon Seon-joo and Chung-Ang University economics professor Oh Kyu-taek.

Kwon and Oh have both served their maximum five-year terms, the limit for individuals in such positions and cannot extend their terms.

Their successors will be selected from a pool of seven outside directors, who will be tasked with supporting KB Financial Group's efforts to establish an optimal governance structure to prevent irregularities.

Regarding Shinhan Financial Group, seven of its nine outside directors will see their first terms expire in the spring and plan to seek reappointment for second terms.

Under these circumstances, the company is considering replacing at least two of the seven, in the name of "strengthening checks and balances against management," according to industry officials.

Hana Financial Group aims to select an outside figure with a proven track record as a compliance officer, as five of its nine outside directors will see their terms end in the spring.

Woori Financial Group wants at least one new outside director with expertise in internal regulatory control, as the end of tenure is approaching for five of its seven outside directors.

The company was recently criticized for improper loans allegedly taken out by relatives of its former Chairman Son Tae-seung, who was subsequently indicted on charges of breach of duty in January.

Financial authorities urged the financial groups to reshuffle their outside directors before they reach their maximum allowable terms.

The authorities noted that outside directors often take it for granted that they will serve the maximum allowable terms and have not been diligent in fulfilling their duty of monitoring corporate activities.

But Jung Ho-chul of Citizens' Coalition for Economic Justice (CCEJ), a civic group, remained skeptical that focusing on outside directors will help improve internal regulatory controls.

"The CEOs and executives should be held accountable for financial crimes, not outside directors," he said.

He noted that outside directors "have no substantial power to intervene on management" and that financial groups "should reconsider the direction of their reforms."