[서울신문] Former President of IBK Bank, who sold Lime Discovery Fund

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▲ Victims of the National Private Equity Fund Fraud Victims and IBK Discovery Fund victims’ meeting are attempting to enter the Financial Supervisory Service by requesting a visit to the Sanctions Deliberation Committee at the Yeouido Financial Supervisory Service in Seoul on the afternoon of the 5th.
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On the 5th, the Financial Supervisory Service made a disciplinary decision against former president Kim Do-jin of IBK Industrial Bank, who sold insolvent funds such as Lime and Discovery, which had been suspended for redemption. The level of disciplinary action was lowered after prior notification was made as a severe disciplinary action. IBK has decided on a one-month suspension of business and a fine for negligence, which is a serious discipline.

The Financial Supervisory Service held a sanction review committee (sanctions review) related to the sale of insolvent funds to IBK and made this decision. Specifically, the Financial Supervisory Service issued a “cautionary warning” against Kim Jeon, but the severe disciplinary tone equivalent to the “recension warning” that was initially notified was weakened. The level of sanctions against financial company executives increases in the order of caution, cautionary warning, censure warning, job suspension, and dismissal recommendation. From above the censure warning, it is classified as severe disciplinary action, and restrictions on employment at financial companies for 3 to 5 years are concurrently carried out.

IBK sold 361 billion won worth of Discovery US Fintech Global Bond Fund and 318 billion won worth of Discovery US Real Estate Senior Bond Fund in 2017-2019. However, the redemption of 69.5 billion won and 21.9 billion won, respectively, has been delayed as the US manager cannot collect the bonds. IBK also sold 29.4 billion won of Lime Fund, which was faced with a large-scale redemption suspension.

The decision of the sanctions review, which is the advisory body of the FSS, has no legal effect. The deliberation result is finalized after approval by the FSS, deliberation by the Securities and Futures Committee, and resolution by the Financial Services Commission.

Reporter Hong Hee-kyung [email protected]