[Asia Economy Reporter Park Ji-hwan] The Financial Supervisory Service (FSS) held a disciplinary committee meeting on the 29th for three securities firms that sold Lime Asset Management's funds but ultimately failed to reach a conclusion.
The FSS announced that at 10:20 p.m. on the same day, it reviewed the inspection result measures for Shinhan Financial Investment and Daishin Securities but could not reach a conclusion. The meeting regarding KB Securities is scheduled to resume on November 5.
The FSS stated, "We thoroughly listened to statements and explanations from multiple company representatives, including legal counsel, and the Inspection Bureau," adding, "Although the deliberation continued late into the night, the meeting was adjourned for the day due to time constraints."
The disciplinary committee, which began at 2 p.m. that day, first reviewed the measures against Shinhan Financial Investment. Despite a marathon meeting lasting over six hours, no final decision was made. Similarly, the discussion on Daishin Securities' sanctions, which started at 9 p.m., ended without a conclusion.
Previously, the FSS notified former and current CEOs of Shinhan Financial Investment, Daishin Securities, and KB Securities of executive sanctions, and institutional sanctions were communicated to each organization. There was significant interest in the disciplinary levels for each CEO during the meeting, but the final results are expected to be decided after additional meetings.
The securities firm CEOs subject to sanctions include Yoon Kyung-eun and Park Jeong-rim, former and current representatives of KB Securities; Kim Byung-chul, former CEO of Shinhan Financial Investment; and Na Jae-cheol, former CEO of Daishin Securities (currently Chairman of the Korea Financial Investment Association). During the previous DLF (Derivative Linked Fund) sanctions involving Woori and Hana Banks, the disciplinary levels were finalized after three meetings.
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