Chung Young-chae, CEO of NH Investment & Securities, is present at the National Assembly of the Agriculture, Forestry, Livestock, Food, Ocean and Fisheries Committee held at the National Assembly in Yeouido, Seoul last year, responding to questions from members of the Congress. News 1
On the 25th, the Financial Supervisory Service imposed a severe disciplinary action on NH Investment & Securities CEO Chung Young-chae, the largest seller, in connection with the suspension of the redemption of the Optimus Asset Management private equity fund. NH Investment & Securities and Hana Bank were subject to some suspension.
The Financial Supervisory Service held a sanction review committee on NH Investment and Hana Bank on the same day and made such a decision.
Representative Jung was disciplined with a censure warning. The level of sanctions by the financial authorities on executives is divided into five stages: ▶ dismissal recommendation ▶ job suspension ▶ reprimand warning ▶ cautious warning ▶ caution. Of these, more than a censure warning constitutes severe disciplinary action. If severe disciplinary punishment is finalized, CEO Chung will be restricted from working in the financial sector for three to five years and consecutive terms.
The Financial Supervisory Service judged that Chung was unable to filter out Optimus, a poor fund, because he failed to establish effective internal control standards as CEO. Representative Chung was unable to participate in the retrial due to the confirmation of a new coronavirus infection (Corona 19) on that day.
NH Investment was sanctioned by suspension of business and imposition of fines. There are five steps to restraining financial companies: ▶ Registration/Revocation of Authorization ▶ Business Suspension ▶ Corrective Order ▶ Institutional Warning ▶ Institutional Attention. Normally, it is classified from institutional warning to severe disciplinary action, and if part of the business is suspended, NH Investment cannot enter the new business for a certain period of time.
NH Investments is a seller who sells 84% of the Optimus Fund. According to the Financial Supervisory Service, sales of NH investment amounted to 432.7 billion won out of the original 5146 billion won of the Optimus unrepurchased fund.
Hana Bank, a trustee of the Optimus Fund, was also suspended from business. Hana Bank is suspicious of drawing funds from other funds and using them to repay the Optimus Fund, and arbitrarily adjusting the funds on the books to resolve the mismatch between the funds.
However, the level of sanctions determined by the Financial Supervisory Service on this day may change in the future. Depending on the case, it is finalized only after deliberation by the Securities and Futures Commission and resolution by the Financial Services Commission.
Reporter Lee Ga-young [email protected]
