'Rhyme Fund Incident' Hana Bank Disciplinary Committee Fails to Reach Conclusion... Further Review Pending

The Financial Supervisory Service Holds First Disciplinary Hearing Against Hana Bank

[Asia Economy Reporter Jin-ho Kim] The Financial Supervisory Service (FSS) held a disciplinary review committee for Hana Bank, holding it accountable for the suspension of redemptions in private equity funds such as the Lime Fund, but no conclusion was reached.

On the 15th, starting from 3 p.m., the FSS discussed the level of disciplinary action based on the comprehensive inspection results of Hana Bank, but decided to reconvene the disciplinary review committee later to continue the discussion.

The FSS stated, "The disciplinary review proceeded with thorough listening to statements and explanations from company officials and the inspection department," and added, "We decided to resume the meeting later."

Considering the COVID-19 situation, the FSS disciplinary review has been conducted via non-face-to-face video conferences since September 4th of last year.

Earlier this month, the FSS reportedly gave Hana Bank a preliminary notice of a severe disciplinary action, an institutional warning. It is also known that a disciplinary action of at least a written warning was notified to Ji Seong-gyu, then the bank president and Vice Chairman of Hana Financial Group.

Disciplinary actions against financial company executives are divided into five levels: ▲recommendation for dismissal ▲suspension of duties ▲written warning ▲cautionary warning ▲caution. From written warning and above are classified as severe disciplinary actions, which restrict employment as a financial company executive for 3 to 5 years from the date of notification.

Although the FSS disciplinary review did not reach a conclusion on this day, the level of disciplinary action against Hana Bank and Vice Chairman Ji Seong-gyu is likely to be reduced. This is because Hana Bank stated that it fully accepts the recommendation of the Dispute Mediation Committee, which was notified the day before.

Previously, Shinhan, Woori, and Industrial Bank of Korea, which accepted the dispute mediation plan, also received reduced disciplinary actions for their CEOs in the disciplinary review. For example, Jin Ok-dong, who received a severe disciplinary action (written warning) from the FSS in April, had his penalty reduced by one level to a cautionary warning after the disciplinary review. Sohn Tae-seung, Chairman of Woori Financial Group, and Kim Do-jin, former president of Industrial Bank of Korea, also had their disciplinary levels reduced.

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