Court: "Financial Supervisory Service's Sanction on SangSangIn CEO Yujunwon's Suspension and Fine is Lawful"

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-yoon] Sangsangin Group and CEO Yoo Jun-won, who were disciplined by financial authorities over allegations of illegal loans, filed a lawsuit in protest but lost the case.

The Seoul Administrative Court Administrative Division 11 (Presiding Judge Kang Woo-chan) ruled on the 20th that Sangsangin, Sangsangin Plus Savings Bank, and CEO Yoo lost the lawsuit they filed against the Financial Services Commission seeking cancellation of the disciplinary measures related to illegal and unfair actions against retirees.

The Financial Services Commission imposed a fine of 1.521 billion KRW on Sangsangin for illegally lending 38.17 billion KRW beyond the credit provision limits to individual borrowers. Additionally, CEO Yoo was suspended from duty for three months on four grounds, including failure to maintain the mandatory credit provision ratio, false reporting, and formally conducting a public auction to allow major shareholders to acquire convertible bonds at a low price.

CEO Yoo and others filed a lawsuit in protest, but the court judged that the Financial Services Commission's disciplinary actions were justified. The court stated, "Loans to borrowers evaluated as sole proprietors were effectively used for personal purposes rather than business purposes, exceeding the loan limits," thereby recognizing the reasons for the Financial Services Commission's actions.

Previously, CEO Yoo had filed for a suspension of the enforcement of the duty suspension order, which was granted by the court. CEO Yoo is currently undergoing a first trial at the Seoul Central District Court on related charges.

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