"DLF Heavy Disciplinary Action Suspended"... Son Tae-seung, Woori Financial Group Chairman, Opens Path for Reappointment

Son Tae-seung, Chairman of Woori Financial Group

[Asia Economy Reporter Kim Hyo-jin] Sohn Tae-seung, Chairman of Woori Financial Group and CEO of Woori Bank, will be able to proceed with his reappointment as chairman as planned. This follows the court's suspension of the Financial Supervisory Service's (FSS) heavy disciplinary measures related to losses from the overseas interest rate-linked derivative-linked fund (DLF) incident.

According to financial and legal circles on the 20th, the Seoul Administrative Court's Administrative Division 11 (Presiding Judge Park Hyung-soon) accepted Sohn's provisional injunction request to suspend the enforcement of the FSS sanctions. The suspension of the sanctions will continue until the 30th day from the date of the first-instance ruling in the main lawsuit.

This court decision implies that there is room to dispute the legitimacy of the FSS's disciplinary actions. A legal insider said, "The acceptance of the provisional injunction suggests that there is some recognition of the possibility that the FSS's sanctions could be viewed differently in the main lawsuit."

The FSS's Disciplinary Committee decided in January to issue Sohn a severe reprimand, equivalent to a heavy disciplinary action, related to the DLF incident, which was finalized with the approval of FSS Governor Yoon Seok-heon.

The FSS notified Sohn and others of the inspection report on the 5th, immediately after the Financial Services Commission's resolution on the institutional (Woori Bank) sanctions. The sanctions took effect at that time. Sohn filed a lawsuit to cancel the sanctions and a provisional injunction three days later via electronic documents.

Due to the reprimand, Sohn was unable to seek reappointment. Although he could complete the remainder of his current term, he would be barred from employment in financial companies for three years thereafter. With the court suspending the enforcement of the sanctions, this obstacle has been removed.

It is expected to take about two to three years for the Supreme Court to issue a final ruling on the main lawsuit. Even if the sanctions are enforced during the next term, Sohn will be able to complete that term.

Before the FSS sanctions were announced, Woori Financial recommended Sohn as the next chairman for a three-year term in December last year. Woori Financial plans to officially appoint Sohn at the shareholders' meeting on the 25th.

Sohn's dual role as chairman and CEO will end with this shareholders' meeting. Kwon Kwang-seok, the nominee, will succeed as CEO of Woori Bank. Sohn plans to focus on the full privatization of Woori Financial and business diversification through large-scale mergers and acquisitions (M&A) of securities or insurance companies.

This content was produced with the assistance of AI translation services.