FSS Begins Disciplinary Action Against Hana Bank Employee Who Shared DLF Customer Financial Information with Law Firm (Comprehensive)

[Asia Economy Reporter Jo Gang-wook] The Financial Supervisory Service (FSS) has initiated disciplinary procedures against employees of Hana Bank who handed over financial transaction information of customers involved in overseas interest rate-linked derivative-linked funds (DLF) to a law firm. The disciplinary action targets the employees who provided the information, not the institution Hana Bank itself.

According to financial authorities on the 5th, the FSS decided to bring the case of Hana Bank's violation of the Act on Real Name Financial Transactions and Confidentiality (Real Name Financial Transactions Act) to the Disciplinary Committee.

The FSS explained that in August last year, four employees working in Hana Bank's investment products department handed over financial transaction information of all 1,936 DLF accounts to Law Firm A, and subsequently provided messenger and email data of 36 employees related to DLF.

An FSS official stated, "We requested an authoritative interpretation from the Financial Services Commission (FSC) on whether providing customer financial transaction information by Hana Bank employees constitutes a violation of the Real Name Financial Transactions Act, and in March this year, we received a response confirming the violation." He added, "The FSC judged that they provided customers' account information 'beyond the minimum necessary scope.'"

In the previously disclosed disciplinary proposal, the FSS indicated that Hana Bank's handing over of DLF customer information and employees' messenger data to the law firm violated both the Real Name Financial Transactions Act and the Personal Information Protection Act.

In response, Hana Bank explained that the information was provided to a law firm with which a comprehensive legal advisory contract had been signed, for the purpose of promptly receiving legal advice in case of customer complaints.

A Hana Bank representative said, "We judged that this falls under the case where customer consent is not required according to Article 4, Paragraph 1, Item 5 of the Real Name Financial Transactions Act, and thus provided the information." He added, "The financial transaction information was used solely for legal consultation purposes and was never leaked externally."

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