Yoon Seok-heon: "DLF Severe Disciplinary Action Is Not Interference in Personnel Affairs at All"

"Market Signal Issue Taken Seriously... Personnel Matters Are for the Board and Shareholders to Handle"

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Haeyoung] Yoon Seokheon, Governor of the Financial Supervisory Service (FSS), drew a clear line regarding the heavy disciplinary actions against bank presidents following the overseas interest rate-linked derivative-linked fund (DLF) scandal, stating that "there was absolutely no personnel intervention."

On the 20th, during the National Assembly's Financial Services Committee plenary session, Governor Yoon explained, "We took the issue of the signal sent to the market very seriously," adding, "We judged that pointing out management responsibility and internal control as management issues was appropriate."

He said, "Personnel matters of (financial companies) are for the board of directors and shareholders to handle on their own; we have nothing further to say," and added, "We have drawn a line and believe we have made our position clear."

Earlier, the FSS decided on a heavy disciplinary action of a 'written warning' against Sohn Tae-seung, President of Woori Bank (and Chairman of Woori Financial Group), and Ham Young-joo, Vice Chairman of Hana Financial Group (former President of Hana Bank). Due to this sanction, President Sohn will be unable to seek reappointment after his term expires in March, and he is currently reviewing filing for a suspension of the sanction's effect and administrative litigation. Ham, a candidate for the Hana Financial Group chairman position, also faces difficulties in challenging for the chairman role when his term expires at the end of the year.

Regarding the Financial Services Commission lowering the fine imposed by the FSS on the DLF case, he explained, "We fully accept and respect that," and added, "Please understand that the standards are somewhat different."