[2023 National Audit] Financial Supervisory Service Chief: "Will Verify Eligibility of Commercial Banks Regarding Daegu Bank's Illegal Accounts"

National Assembly Audit of the Financial Supervisory Service on the 17th

Lee Bok-hyun, Governor of the Financial Supervisory Service

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), stated regarding the incident where Daegu Bank secretly opened 1,662 illegal securities accounts for customers, "There is no disagreement on the intention to verify during the screening process for Daegu Bank's transition to a commercial bank whether (Daegu Bank's internal controls) are at a level that can be held accountable not only for regional banks but also for commercial banks."

On the 17th, during the National Assembly's Financial Services Commission audit of the FSS, Assemblyman Kim Sung-joo pointed out, "There has been no mention of the holding company's responsibility related to Daegu Bank's illegal securities account opening issue," and added, "In the process of Daegu Bank pushing for conversion to a commercial bank, the attempt to excessively inflate non-interest income led to the illegal account problem." In response, Governor Lee made the above statement.

Governor Lee said, "If there is a problem with the major shareholder's eligibility, neither commercial banks nor regional banks are acceptable," and added, "However, the bank's major shareholder (being a holding company) does not refer to the chairman personally." Nevertheless, he stated, "We plan to review the legal aspects further and examine the responsibility relationship between the holding company and the bank."

Regarding the 299.8 billion KRW embezzlement case at Gyeongnam Bank, Governor Lee said, "The FSS has repeatedly advised against having the same employee work in one department for a long time and even received responses that there was no problem," and added, "There has been an aspect of trusting financial companies too much so far, but from now on, we will supervise and inspect the supervised financial companies with a sharper perspective."

He continued, "If a financial company employee commits illegal acts such as embezzlement above a certain amount, we will also promote measures to increase sentencing so that they can be blocked from society, in consultation with the prosecution and the Financial Services Commission," he added.

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