IBK Industrial Bank, Euljiro, Jung-gu, Seoul. Newsis
IBK IBK has been penalized for suspension of some businesses for one month along with a penalty for the sale of the Lime Discovery Fund, which has been suspended for redemption. Former bank chief Kim Do-jin, who was the head of the bank at the time the fund was sold, received a’cautionary warning’. It was lowered from the severe disciplinary punishment previously notified by the Financial Supervisory Service to light disciplinary action.
From severe disciplinary punishment to light disciplinary action, one step reduction
IBK, partially suspended for a month
At the second sanction review committee held on the 5th, the Financial Supervisory Service decided to suspend business for one month and impose a fine on IBK for violating the obligation to establish internal control standards. It is estimated that it will be difficult to sell new funds for the next month. The opinions were gathered to give disciplinary action at the level of cautious warning (significant) even to employees who failed to establish an internal control system.
Do-jin Kim, former head of the Industrial Bank of Korea. yunhap news.
According to the financial industry, the Financial Supervisory Service notified former chief Kim of severe disciplinary action at the level of a “cause warning” prior to the sanctions review. The level of sanctions by financial authorities on financial company executives is classified into five levels: recommendation of dismissal, suspension of work, censure warning, cautionary warning, and caution. Among them, censure warning or higher corresponds to severe disciplinary action that limits employment in the financial sector for 3 to 5 years, including consecutive employment. Therefore, one level lower cautionary warning is an analysis that the disciplinary level has been easing.
This sanction is because the Discovery and Lime Funds sold by IBK stopped repurchasing one after another, and some investors suffered damage. IBK has sold the Discovery US Fintech Global Bond Fund (361.2 billion won) and the Discovery US Real Estate Senior Bond Fund (318 billion won) worth 6792 billion won for three years since 2017. However, the redemption of about 91.4 billion won was delayed as the US manager (DLI), which rolled the fund’s funds, could not recover the bonds. In addition, IBK also sold 29.4 billion won of Lime Asset Management Fund, which caused a large-scale redemption suspension of over 1 trillion won.
Meanwhile, the sanctions agenda is submitted to the Financial Services Commission and finalized after deliberation and resolution. IBK is a special bank, and the final sanction authority rests with the Financial Services Commission.
Reporter Yeom Ji-hyun [email protected]