FSS Imposes 2.1 Billion Won Fine on Shinhan Bank

[Asia Economy Reporter Kwangho Lee] Shinhan Bank was fined 2.1 billion KRW by the Financial Supervisory Service (FSS) for excessively offering funds in the Seoul Metropolitan Government's 'treasury keeper' competition.

According to financial authorities on the 5th, the FSS imposed a 'institutional warning' sanction and a fine of 2.1311 billion KRW on Shinhan Bank following a comprehensive inspection on the 23rd of last month.

According to the sanction plan, Shinhan Bank's Institutional Customer Department participated in the Seoul Metropolitan Government treasury designation bidding in April 2018 and proposed 100 billion KRW for the construction cost of the IT system to operate the treasury.

At that time, the Seoul Metropolitan Government treasury bidding, with an annual budget scale of about 30 trillion KRW, saw fierce competition among commercial banks, and Shinhan Bank was selected as the financial institution to operate the Seoul treasury in May 2018.

The change in the management entity of the Seoul treasury, which had been handled by Woori Bank, was a major topic as it was the first change in 104 years.

However, through the comprehensive inspection, the FSS judged that 39.3 billion KRW out of the 100 billion KRW for the IT system construction cost was not an essential expense for treasury operation.

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