Financial Supervisory Service Holds IBK Disciplinary Hearing Today... Banking Sector 'Tense' After Receiving Heavy Sanctions

The FSC Resumes Disciplinary Committee Meeting on the 5th

[Asia Economy Reporter Park Sun-mi] On the afternoon of the 5th, the Financial Supervisory Service (FSS) held a disciplinary committee meeting and decided on severe disciplinary action against Kim Do-jin, former CEO of Industrial Bank of Korea (IBK), who caused massive losses to investors by selling Lime Fund and Discovery Fund.

At the disciplinary committee held on the 28th of last month, the FSS presented and reviewed the corrective measures based on the sector inspection results of Discovery Asset Management and IBK, but was unable to reach a conclusion on the level of disciplinary action against former CEO Kim. The FSS decided to reconvene the meeting on this day to make a decision.

As the FSS has begun full-scale disciplinary reviews of the total eight banks that sold the problematic private equity funds, starting with IBK, the banking sector is on high alert regarding the decision on the disciplinary level for former IBK CEO Kim. If severe disciplinary action is confirmed at the committee as if Kim had been pre-notified, other banks that recently received preliminary notices of severe discipline from the FSS may also face similar outcomes.

On the 3rd, the FSS gave preliminary notices of severe disciplinary action to the CEOs of Woori Bank and Shinhan Bank in connection with the Lime Asset Management fund incident, which caused a large-scale suspension of redemptions. Son Tae-seung, then CEO of Woori Bank and now Chairman of Woori Financial Group, was notified of a suspension of duties, while Jin Ok-dong, CEO of Shinhan Bank, was notified of a reprimand.

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