IBK Industrial Bank, 1-Month Partial Suspension of Operations in Disciplinary Hearing... Former President Receives 'Cautionary Warning' (Update)
Kim Dojin, Former IBK Bank President, Issues 'Cautious Warning'
[Asia Economy Reporter Park Sun-mi] On the 5th, the Financial Supervisory Service (FSS) decided on disciplinary measures against Industrial Bank of Korea (IBK) and its executives related to the incomplete sales of the Discovery Fund and Lime Fund at the Disciplinary Committee meeting.
At the disciplinary meeting, the FSS decided to recommend to the Financial Services Commission a one-month partial suspension of business and a fine against IBK for violating the obligation to establish internal control standards (Financial Company Governance Act) related to the incomplete sales of the Discovery Fund and Lime Fund.
Additionally, former IBK President Kim Do-jin received a "cautionary warning," and the former vice president was recommended for a "three-month salary reduction," with related executives receiving recommendations ranging from "three-month salary reduction to caution."
The FSS explained, "The 5th Disciplinary Committee was held to review the results of the sector inspection related to the incomplete sales of the Discovery US Fintech Private Fund and Lime Repo Plus 9M Private Trust conducted last year on IBK," and "considering that the subject of the review involved significant social issues such as numerous consumer damages, we held two meetings, listened thoroughly to statements and explanations from many company representatives (including legal representatives) and the Inspection Bureau, and carefully examined all facts and evidence through in-depth deliberation to reach this decision."
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However, as the Disciplinary Committee is an advisory body to the head of the Financial Supervisory Service, its decisions have no legal effect. The final disciplinary measures will be confirmed through the FSS head’s approval, Securities and Futures Commission review, and Financial Services Commission resolution according to each subject of action.
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