In connection with the Lime Asset Management Fund crisis, the Financial Supervisory Service notified Shinhan Bank and Woori Bank’s bank managers of severe punishment.
According to the financial authorities on the 4th, the Financial Supervisory Service notified Woori Financial Group Chairman Son Tae-seung, who was the head of Woori Bank at the time of the Lime Fund sale on the 3rd, of a’job suspension’ and a’cause warning’ to Jin Ok-dong, head of Shinhan Bank. Shinhan Financial Group Chairman Cho Yong-byeong received a’cautionary warning’, which has a lower level of disciplinary action.
The level of sanctions by the Financial Supervisory Service is divided into ▲recommendation of dismissal ▲suspension of job ▲consultant warning ▲careful warning ▲caution. The sanctions received by Chairman Son Tae-seung and Chairman Jin Ok-dong are severe disciplinary action, and when approved by the Financial Services Commission, employment in financial companies is restricted for 3 to 5 years.
Woori Bank’s higher level of sanctions than Shinhan Bank is due to the large amount of Lime Fund sales. Investor money tied to Lime Fund, which has ceased to sell, is 1.67 trillion won, and Woori Bank (357.7 billion won) has the largest balance. Next ▲ Shinhan Bank (276.9 billion won) ▲ Hana Bank (871 billion won) ▲ Busan Bank (52.7 billion won) ▲ Industrial Bank (29.4 billion won) ▲ Kyungnam Bank (27.6 billion won) ▲ Nonghyup Bank (8.9 billion won) ▲ Korea Development Bank (37 KRW billion) in order.
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Although the level of sanctions is high, the Financial Services Commission decision remains. After discussing the FSS’s sanctions proposal at the Financial Services Commission, the level of sanctions is finally determined.
Even if the Financial Services Commission approves the original draft of the Financial Supervisory Service as it is, administrative litigation can be proceeded. In March 2020, the Financial Services Commission notified the censure warning to Woori Financial Group Chairman Son Tae-seung and Hana Financial Group Vice Chairman Ham Yeong-ju due to the incomplete sale of the foreign interest rate-linked derivatives-linked fund (DLF). I am carrying out an administrative lawsuit.