Woori and Shinhan Bank Fail to Reach Conclusion in 2nd Lime Fund Disciplinary Hearing

Victims of the Lime Fund are holding a rally in front of the Financial Supervisory Service in Yeouido, Seoul, urging for dispute mediation to protect victims of the Lime Fund. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kwangho Lee] The Financial Supervisory Service's Disciplinary Committee (Disciplinary Committee), which determines the level of sanctions against banks that sold Lime private equity funds in response to the Lime private equity fund scandal, has once again failed to reach a conclusion and decided to hold another meeting.

The Financial Supervisory Service announced on the 19th that during the Disciplinary Committee meeting held on the 18th, they listened thoroughly to statements from bank officials and the Financial Supervisory Service's Inspection Bureau and deliberated late into the night, but due to time constraints, the meeting was adjourned and will be reconvened later.

The subjects of the Disciplinary Committee are Woori Bank and Shinhan Bank. The Financial Supervisory Service gave prior notice of a suspension of duties equivalent sanction to Sohn Tae-seung, Chairman of Woori Financial Group and former Woori Bank President at the time of the Lime incident, and a reprimand warning to Jin Ok-dong, President of Shinhan Bank.

The levels of sanctions against financial company executives are divided into five stages: dismissal recommendation, suspension of duties, reprimand warning, cautionary warning, and caution. Among these, reprimand warning or higher is classified as a serious disciplinary action that restricts employment in financial companies for 3 to 5 years.

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