Reduction of sanctions deliberation one step… Partial suspension of business at the bank for 1 month, fine
On the 5th, the Financial Supervisory Service decided on a disposition of IBK, which sold insolvent funds such as Lime and Discovery Fund, to suspend some business and warn the CEO.
Following the 28th of last month, the Financial Supervisory Service held a sanction review committee against IBK for the second time and discussed the sanctions against IBK.
The Financial Supervisory Service decided to ask the IBK to be liable for violating the obligation to establish internal control standards (the Financial Company Governance Act), and to propose to the Financial Services Commission to suspend a part of work for one month and to impose a fine.
At the time of the fund’s sale, the former head of IBK, Kim Do-jin, was warned, and the vice-chairman at the time was moved for three months.
Prior to the sanctions review, the Financial Supervisory Service provided a notice of disciplinary action equivalent to a censure warning against Kim, but lowered the level by a cautionary warning in the sanctions review.
The level of sanctions against financial company executives rises in the following order: caution, cautionary warning, reprimand warning, suspension of work, and dismissal recommendations.
From above the censure warning, it is classified as severe disciplinary action, and employment at financial companies is restricted for the next 3 to 5 years.
In 2017-2019, IBK sold the Discovery US Fintech Global Bond Fund and the Discovery US Real Estate Senior Bond Fund worth KRW 361.2 billion and KRW 318 billion, respectively.
However, the redemption of 69.5 billion won and 21.9 billion won, respectively, is delayed as US managers are unable to recover bonds invested in fund funds.
Lime Fund (Lime Repo Plus 9M), which caused a large-scale redemption suspension, also sold 29.4 billion won.
The sanctions review is the advisory body of the FSS Commissioner, and the decision on the sanctions review has no legal effect.
The results of the deliberation will be finalized through the approval of the Financial Supervisory Service, deliberation by the Securities and Futures Commission, and resolution by the Financial Services Commission.
/yunhap news
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