Korea to curb hefty bonuses for financial executives

South Korea's financial regulator said Tuesday it will curb existing bonus policies for senior executives at financial firms from December.

Starting Dec. 4, a financial executive will be given an annual bonus equal to 60 percent of the total with the rest to be paid over the next three years, the Financial Services Commission said in a statement. 

If the financial executive incurs a loss during the three-year period, the rest of the executive's annual bonus will be cut. If the loss is huge, the executive's bonus could be seized.

The regulation is aimed at preventing financial executives from focusing on short-term investment projects for bonus payment, the FSC said in a statement.

The regulation was approved at a Cabinet meeting earlier in the day, the FSC said. (Yonhap)