Court: "Suspension of Park Jeongrim, Former KB Securities CEO, Must Be Canceled"… Financial Services Commission Loses Case

The financial authorities have been ordered by a court to cancel the suspension order imposed on former KB Securities CEO Park Jeong-rim, holding her responsible for the Lime Fund scandal.

Junglim Park, former CEO of KB Securities

On the 20th, the Administrative Court of Seoul, Administrative Division 4 (Presiding Judge Kim Jeong-jung) ruled in favor of Park in her lawsuit against the Financial Services Commission seeking cancellation of the suspension order.

Previously, in November last year, the Financial Services Commission imposed a severe disciplinary action of a three-month suspension on Park Jeong-rim for violating the obligation to establish internal control standards and providing leverage funds to the fund in connection with the Lime Fund scandal. Park filed an appeal against this, requesting cancellation of the order and a suspension of the suspension order. Park's side argued, "Five months before the Lime incident occurred, the comprehensive audit conducted by the financial authorities on KB Securities judged that the internal control standards were appropriate, but after the incident broke out, they made a contradictory judgment that the standards were not established," adding, "It is unfair to discipline us for not having established internal control standards after an unforeseen incident occurred." The court accepted Park's request for suspension of the order in December last year.

After receiving the suspension order from the Financial Services Commission, Park voluntarily resigned from her position as Head of the General Division at KB Financial Group in December last year but did not resign from her position as CEO of KB Securities. Later, after stepping down as CEO of KB Securities in April, she was appointed as an outside director at SK Securities.

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