Financial Supervisory Service Suspends Former Chairman Kang Bang-cheon Over 'Nominee Investment' Allegations

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] The Financial Supervisory Service (FSS) has imposed a heavy disciplinary action of suspension on Kang Bang-cheon, former chairman of Asset Plus Asset Management, who was suspected of nominee investments.

According to the FSS on the 15th, the FSS held a disciplinary committee meeting the day before and decided on the suspension of Kang’s duties and the imposition of fines related to the nominee investment allegations against him.

Kang was suspected of lending tens of billions of won of his own funds to the shared office operator ‘Wonderplus,’ where he is the major shareholder, and then conducting asset management under the corporation’s name, engaging in ‘proprietary trading.’ Wonderplus is majorly owned by Kang, and the second largest shareholder is Kang’s daughter.

According to the Capital Markets Act, investments by executives and employees of asset management companies must be conducted under their own names because such investments can influence individual investors, and nominee investments are prohibited. Therefore, the FSS judged Kang’s investment method as using nominee accounts.

Disciplinary actions against executives in the financial investment industry are classified into caution, warning, reprimand, suspension, and dismissal recommendation. Severe disciplinary actions such as reprimands or higher for executives, or business suspension or higher for institutions, related to violations of the Capital Markets Act are forwarded to the Financial Services Commission for final approval procedures.

Since the FSS investigation began, Kang stepped down from the front line of management at Asset Plus Asset Management in July. The FSS discovered signs of Kang’s nominee investments during ad hoc inspections of asset management companies last November.

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