[Infostock Daily= Reporter Park Hyo-sun] The Financial Supervisory Service finalized sanctions against Woori Bank and Hana Bank, which sold derivatives-linked funds (DLF), which caused massive principal losses.
If Woori Bank and KEB Hana Bank do not take legal action as the disciplinary punishment for the financial holding chairman is confirmed, it is impossible for Woori Financial Group chairman Son Tae-seung and Hana Financial Group vice chairman Ham Young-ju to be reappointed.
The Financial Supervisory Service's sanctions review committee deliberated on the results of the inspection of Woori Bank and KEB Hana Bank's DLF incomplete sales.
Sohn Tae-seung, chairman of Woori Financial Group, and Ham Young-joo, vice chairman of Hana Financial Group, voted for a warning of censure and a warning (discipline) to Hana Bank President Ji Sung-kyu. For other employees, the government decided to pay a penalty by disposing of the state for three months of suspension.
The censure warning is one of the disciplinary measures: if sanctions are finalized, the rest of the term can be held, but the employment of financial institutions will be limited over the next three years.
The sanctions against the institutions are subject to the Financial Services Corporation Governance and Rescue Act. KEB Hana Bank and Woori Bank, which violated the obligation to establish internal control standards, decided to propose to the Financial Supervisory Commission six months of suspension and fines.
The punishment for management is a matter that will be confirmed by the Financial Supervisory Commission.
However, the review is an advisory body of the Financial Supervisory Service, and the results of the deliberation are not legally effective. The timing of the implementation is after institutional sanctions were passed at the Financial Services Commission's plenary session and notified to each institution.
Reporter Park Hyo-sun hs1351@infostock.co.kr
