Acceptance of dispute settlement… Will the CEO’s disciplinary level be reduced?
<대한금융신문=하영인 기자> The third round of battles is expected to resume as the Financial Supervisory Service’s Sanctions Deliberation Committee to determine the level of sanctions against Shinhan Bank and Woori Bank, which sold Lime Funds, cannot conclude again.
The Financial Supervisory Service, which held the second sanctions review on the previous day (18th), said, “The sanctions review committee listened sufficiently to the statements and explanations of the FSS’s inspection bureau and a number of company officials. I decided to do it.”
Woori Bank’s review of sanctions is about whether the company is insolvent when selling Lime Funds, and whether or not the bank has unfair solicitation.
In the case of Shinhan Bank, we are interested in whether it can even punish the CEO due to inadequate internal control. In addition, while selling Lime Fund at complex stores where Shinhan Bank and Shinhan Investment Corp. entered the store, Shinhan Financial Group also examines whether Shinhan Financial Group is responsible for not neglecting the management of complex stores.
The FSS was responsible for the incomplete sale of Lime funds and notified these banks in advance of the severe disciplinary action for institutional warnings and executive disciplinary action.
Woori Financial Group Chairman Son Tae-seung, who was the chairman of Woori Bank at the time of the Lyme crisis, was notified of a suspension of duties (significantly), and Shinhan Bank President Jin Ok-dong received a censure warning.
The level of sanctions on financial company executives is divided into five stages: △recommendation for dismissal △recommended job △consultant warning △cautionary warning △caution. Among them, censure warnings and above are classified as severe disciplinary action restricting employment in financial companies for 3 to 5 years.
In the first sanctions review held on the 25th of last month, the sanctions review against Shinhan Bank could not begin as the sanctions review for Woori Bank increased.
This time, Shinhan Bank’s sanctions review was focused on, but it ended without being able to reach a conclusion. The prevailing view was that it would take some time to come to a conclusion when looking at the two banks in turn and looking at the seriousness of the matter.
The disciplinary action against former IBK IBK IBK President Kim Do-jin, who was the first subject of sanctions for the CEO of the banking sector, was concluded at the second sanctions review against IBK on the 5th of last month. In the censure warning that was announced at the time of prior notification, former chief Kim received a disciplinary disciplinary punishment, which lowered the level of disciplinary action by one level.
Woori Bank and Shinhan Bank are also paying attention to whether the disciplinary level for CEOs will be reduced. Both banks, along with IBK, recently accepted a mediation proposal from the Financial Supervisory Service Dispute Mediation Committee related to the Lime Fund. Earlier, the Financial Supervisory Service announced that it would reflect banks’ consumer protection efforts in the sanctions review.
Woori Bank held an extraordinary board meeting on the 15th and decided to return the entire principal to the victims of trade finance funds and to accept each dispute settlement proposal that included voluntary compensation for funds with unconfirmed losses. Accordingly, it is expected to compensate from next month when the principal reaches about 4,08 billion won.
Shinhan Bank also decided to initiate a dispute settlement procedure for Lime Fund, whose losses have not been confirmed. IBK is known to be considering whether to accept the dispute settlement proposal.
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