San-eun Sanctioned by Financial Authorities for Reporting Obligation Violation

Dozens of Current and Former Executives Also Sanctioned

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] Financial authorities have imposed institutional caution sanctions on Korea Development Bank (KDB) for violations including failure to report stock-collateralized loans.

According to the financial sector on the 26th, the Financial Services Commission held a plenary meeting the day before and finalized the sanctions against KDB.

First, the issue arose from failing to comply with the reporting obligation for stock-collateralized loans. Under the Bank Act, banks must report to the Financial Services Commission when providing loans secured by more than 20% equity stakes in other companies, but KDB reportedly did not comply. There were also other reporting violations under the Bank Act.

Additionally, dozens of current and former KDB employees were reportedly sanctioned. Approximately 20 current and former employees were sanctioned for violations of the Bank Act and other reasons combined.

A KDB official stated, "We have not yet received any notification from the authorities regarding the sanctions."

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