Lime Fund Disciplinary Hearing Attended by Korea Consumer Agency...Will Shinhan and Woori Bank's Penalties Be Reduced?

Lime Disciplinary Hearing First Appearance at Korea Consumer Agency... Disciplinary Levels for Woori and Shinhan Banks

On the 2nd, in front of the Financial Supervisory Service in Yeouido, Seoul, victims of the Lime Fund held a rally urging dispute mediation for victim protection regarding the Lime Fund. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kwangho Lee] In relation to the Lime scandal, the Financial Supervisory Service's Consumer Protection Department will attend the Financial Supervisory Service's Disciplinary Committee meeting scheduled for the 25th, targeting Woori Bank and Shinhan Bank.

According to the financial sector on the 22nd, the Consumer Protection Department of the Financial Supervisory Service will appear as a witness at the disciplinary hearing on the 25th to express opinions on the consumer protection measures and efforts to remedy damages by the respective institutions.

Woori Bank and Shinhan Bank sold Lime funds, which caused a large-scale suspension of redemptions, amounting to 357.7 billion KRW and 276.9 billion KRW respectively. The Financial Supervisory Service held them accountable by pre-notifying Son Tae-seung, then CEO of Woori Financial Group, with a 'suspension from duty,' and Jin Ok-dong, CEO of Shinhan Bank, with a 'reprimand warning.' Cho Yong-byeong, Chairman of Shinhan Financial Group, received a minor disciplinary action of a 'cautionary warning.'

The disciplinary levels for financial company executives are divided into five stages: recommendation for dismissal, suspension from duty, reprimand warning, cautionary warning, and caution. Among these, reprimand warning and above are considered severe disciplinary actions. If the sanctions are confirmed as is, reemployment in the financial sector will be prohibited for 3 to 5 years after the current term ends.

The financial sector is closely watching the level of disciplinary action. The severity of sanctions can change through the disciplinary committee's deliberation.

As a witness, the Consumer Protection Department will explain the damage relief measures taken by the financial institutions. It is up to the disciplinary committee members to decide whether to reduce the penalties based on this.

Considering that the Consumer Protection Department expressed no disagreement with the prosecution's proposal for severe sanctions at the disciplinary hearings of the three securities firms that sold Lime funds, the department's participation itself can be interpreted as a message that the efforts of the banks are being recognized.

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