'Rhyme Disciplinary Committee' Issues 'Cautionary Warning' to Jin Ok-dong... Avoids Severe Punishment (Update)

Jin Ok-dong, President of Shinhan Bank

[Asia Economy Reporter Kwangho Lee] The Financial Supervisory Service (FSS) held a disciplinary committee meeting regarding Shinhan Bank, the distributor of Lime Asset Management's private equity fund, and decided to impose a "cautionary warning" (significant) sanction on Jin Ok-dong, CEO of Shinhan Bank. Cho Yong-byeong, Chairman of Shinhan Financial Group, was given a "caution" sanction.

This level of sanction is one step lighter than the previously notified sanctions by the FSS, which were a "reprimand warning" for CEO Jin and a "cautionary warning" for Chairman Cho. It is analyzed that this reflects post-incident remedial efforts, such as agreeing to dispute resolution based on post-settlement methods using estimated loss amounts.

On the 22nd, the FSS held the disciplinary committee and reviewed the sanctions proposal related to the Lime fund incident involving Shinhan Bank and Shinhan Financial Group, deciding on a cautionary warning for CEO Jin and a caution for Chairman Cho.

The disciplinary committee also decided on institutional sanctions for Shinhan Bank, including a three-month partial suspension of business and a fine, and agreed to recommend the disciplinary measures to the Financial Services Commission.

The disciplinary committee reached its conclusion after a marathon review that extended past midnight on the 23rd. A committee official stated, "We listened thoroughly to statements and explanations from multiple company representatives and the Inspection Bureau, carefully examined facts and evidence, and conducted a very cautious and in-depth review."

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