[서울신문] We and Shinhan’s’Lime Fund’ sanctions can’t be concluded again… The three-lane outline seems to come out

Ended on the 18th due to the time of the second sanction
Shinhan Jinok-dong attends and answers questions
Interest in whether to reduce disciplinary action for damage relief efforts

The Financial Supervisory Service’s sanction review committee on Lime Fund sellers Woori Bank and Shinhan Bank could not conclude again. The Financial Supervisory Service is planning to hold a third sanctions review in the near future.

The Financial Supervisory Service said, “We listened sufficiently to the statements and explanations of the FSS’s inspection bureau and many company officials, and conducted deliberations until late at night. However, due to time, the meeting was ended and the meeting was decided to resume later for in-depth deliberation.” 19 Sun said.

The sanctions trial, which started at 2 pm on the 18th, lasted about 8 hours until 10 pm.

Shinhan Bank officials such as Shinhan Bank President Jin Ok-dong, the subject of the sanctions, attended at the same time as the Financial Supervisory Service Inspection Bureau and answered inquiries. In order to distancing the society due to Corona 19, a non-face-to-face video conference was held inside the Financial Supervisory Service building. Woori Financial Group Chairman Son Tae-seung, who attended the first sanctions hearing held on the 25th of last month, did not appear on that day.

Earlier, the Financial Supervisory Service notified Woori Financial Group Chairman Son Tae-seung, who served as Woori Bank chairman at the time of selling the Lime Fund, of a severe disciplinary “job suspension”. Shinhan Bank Chairman Jin Ok-dong also notified a censure warning, which is also a serious discipline, and a “cautionary warning,” a light discipline, to Shinhan Financial Group Chairman Cho Yong-byeong. Sanctions for executives at financial companies are divided into five stages: recommendation for dismissal, suspension of work, censure warning, cautionary warning, and caution. Those above the censure warning are classified as severe disciplinary action. If severe disciplinary action is taken, re-employment in the financial sector is prohibited for 3 to 5 years after the term expires.

The FSS’s judgment is that the two banks sold the Lime Fund incompletely. In the sanctions review of Woori Bank, the question of whether the Lime Fund was insolvent in advance and the bank’s unfair solicitation were the issues, and in the sanctions review of Shinhan Bank, whether the CEO could even punish the CEO due to the lack of internal control.

Interest is focused on whether banks’ efforts to rescue victims will affect the level of disciplinary action. Woori Bank recently decided to accept a dispute settlement proposal for a fund with an unconfirmed loss. Shinhan Bank has also agreed to go through the dispute settlement procedure of Lime Fund, whose loss has not been confirmed. In the last sanctions review, the Financial Supervisory Service (Financial Consumer Protection Office) attended as a reference and expressed opinions on Woori Bank’s consumer protection measures and efforts to relieve damage.

In the financial sector, when looking at the case of the private equity crisis, it is predicted that the outline will be revealed in the next sanctions trial. If the disciplinary bill is resolved at the sanctions review, it is presented as an agenda by the Securities and Futures Commission and the Financial Services Commission, and then the final decision process goes through.

Reporter Kim Hee-ri [email protected]