Financial Authorities Accelerate Sanctions on Lime, Optimus, and Other Bad Fund Sellers

[Asia Economy Reporter Park Jihwan] Financial authorities are expected to accelerate sanctions against banks and securities firms that sold bad funds such as Lime and Optimus.

On the 27th, the Financial Services Commission announced that it discussed the direction of handling sanctions against financial companies that sold bad funds and decided to separate the violations under the Capital Markets Act and the violations under the Financial Company Governance Act for processing.

The FSC plans to promptly conclude the violations under the Capital Markets Act according to the current discussion schedule without any setbacks. Regarding the violations related to the obligation to establish internal control standards under the Governance Act, the FSC intends to make a comprehensive judgment through legal review of judicial decisions and comparative deliberation of related agenda items.

Earlier, the Financial Supervisory Service imposed heavy disciplinary measures on the chairman of Woori Financial Group for violating the obligation to establish internal control standards under the Governance Act in relation to Woori Bank's poor sale of DLF (Derivative Linked Fund).

However, the court ruled in the first trial that "there is no legal basis to impose sanctions," siding with Woori Bank, causing delays in related sanctions by financial authorities.

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