Public Financial Merger Hearing: KGI Financial Vice Chairman Absent, Chair Condemns Chen Kuan-chou for 'Contempt of Congress'

The Legislative Yuan's Finance Committee convened a public hearing this morning (12th) at 9 a.m. to discuss the topic: 'How should state-affiliated public financial institutions formulate short- to medium-term strategies and implementation plans for pan-public mergers amid fierce competition?'

All chairpersons, vice chairpersons, and general managers from the ten major public financial institutions—including KGI Financial—attended, except for KGI Financial's Vice Chairman Chen Kuan-chou. Lai Shih-pao, the legislator presiding over the hearing, strongly criticized Chen's absence.

Lai stated, 'I must condemn KGI Financial's Vice Chairman Chen Kuan-chou. He is showing contempt for Congress. He claimed he was attending a board meeting, but KGI Financial's Chairman Chang Chao-shun is right here in the Finance Committee room.'

Chen had requested leave to attend the board meeting, but Chairman Chang had already informed Lai's office the previous day that he had rescheduled KGI's board meeting to 11:30 a.m. specifically to attend the hearing. Lai emphasized, 'Attending a board meeting is not a valid excuse.'

The hearing was organized by Finance Committee convener legislator Lee Yen-hsiu, who was absent and thus represented by Lai. Lai opened the session by stating its purpose.

He said, 'Recently, the Ministry of Finance, through its supervised public institutions, spent nearly NT$10 billion to acquire control of KGI Financial, securing 8 out of 15 board seats—three each for the three major private shareholders and one, giving the Ministry a decisive majority. The public believes this move aims to push forward public-to-public mergers (gong-gong bing).'

However, 'afterward, the Ministry has remained vague about its intentions. I have serious doubts. If they're not pushing public mergers, why spend so much money on KGI Financial? KGI is among the lowest-performing and smallest in scale among Taiwan's financial holdings. Initially, it was believed that public mergers would improve efficiency, but to this day, no clear answer has been given. That's why we're holding this hearing—to demand the Minister of Finance explain clearly and transparently.'

Lai added, 'I know Finance Minister Chuang Tsui-yun is in a difficult position. The decision to spend nearly NT$10 billion acquiring KGI wasn't made by the Minister—it came from higher levels. I'm deeply concerned that if public mergers aren't pursued, this will become a repeat of the Second Financial Reform, where the government essentially gives money away, benefiting specific conglomerates.'