Hana Bank and Vice Chairman Ham Young-joo File Lawsuit to Cancel DLF Disciplinary Action

On the 1st, Seoul Administrative Court Receives Disciplinary Cancellation Lawsuit and Provisional Injunction Request

On the 3rd, the headquarters of Hana Bank in Jung-gu, Seoul, displayed the brand name "Hana Bank" without "KEB." Hana Bank announced that from this day forward, the brand name will change from KEB Hana Bank to "Hana Bank," marking a fresh start as the new Hana Bank preparing for the next decade. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Min-young] Hana Bank has taken legal action regarding the overseas interest rate-linked derivative-linked financial products (DLF) that caused massive principal losses last year. Ham Young-joo, Vice Chairman of Hana Financial Group and the bank president at the time of the DLF incident, also filed an administrative lawsuit and a provisional injunction to suspend the disciplinary effect in his personal capacity.

According to the financial sector on the 1st, Hana Bank filed an administrative lawsuit at the Seoul Administrative Court on the same day, requesting the cancellation of the disciplinary action imposed by the financial authorities due to the DLF incident. They also submitted a provisional injunction to suspend the disciplinary effect.

This action was taken two days before the deadline for filing the administrative lawsuit on the 3rd.

Earlier, on March 5th, the Financial Services Commission notified Hana Bank and Woori Bank, the banks that sold the DLF, of sanctions including a six-month partial suspension of business (new sales of private equity funds) and fines.

The fines imposed on the two banks were 16.78 billion KRW and 19.71 billion KRW, respectively.

Chairman Sohn Tae-seung of Woori Financial Group and Vice Chairman Ham Young-joo of Hana Financial Group. / Photo by Hyunmin Kim kimhyun81@

Additionally, the Financial Services Commission imposed severe disciplinary actions (reprimands) on Vice Chairman Ham and Woori Financial Group Chairman Sohn Tae-seung, who were the heads of the two banks at the time of the DLF incident.

Hana Bank respects the decision of the financial authorities but considers the six-month partial suspension of business to be a matter that significantly affects management, and thus has decided to seek the court’s judgment by filing a lawsuit. Both banks have currently suspended the new sales of private equity funds.

Ham Young-joo, Vice Chairman of Hana Financial Group Photo by Yonhap News

Vice Chairman Ham also filed an administrative lawsuit to cancel the disciplinary action and a provisional injunction to suspend its effect on the same day in his personal capacity.

Hana Bank also filed an objection to the fine imposed by the Financial Services Commission on the 22nd of last month. The purpose was to seek the court’s judgment on whether the fine of approximately 16.8 billion KRW was appropriate.

Chairman Sohn had already filed a lawsuit to cancel the disciplinary action and a provisional injunction in court in March. The court accepted Chairman Sohn’s provisional injunction request, temporarily suspending the disciplinary effect, and he succeeded in renewing his term as chairman.

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