FSS Unable to Conclude Disciplinary Hearing for Woori and Shinhan... "To Resume on the 18th of Next Month"

Woori Bank's Sanctions Review Prolonged, Shinhan Bank's Sanctions Review Ends Without Starting

[Asia Economy Reporter Wondara] The Financial Supervisory Service (FSS) has decided to reconvene the disciplinary committee for Woori Bank and Shinhan Bank on the 18th of next month.

The FSS announced via text message at 10:30 PM on the 25th, immediately after the conclusion of the 7th disciplinary committee meeting, that "the deliberations proceeded while thoroughly listening to statements and explanations from multiple company officials and the inspection bureau, and the meeting will resume on March 18."

On that day, the FSS conducted the disciplinary hearing for Woori Bank starting at 2 PM. The hearing was held with Woori Bank and the inspection bureau appearing simultaneously to respond to inquiries. However, the disciplinary hearing for Shinhan Bank, originally scheduled to begin at 6:30 PM, was not held due to the extended duration of the Woori Bank hearing.

Previously, the FSS had preliminarily notified Son Tae-seung, then chairman of Woori Bank at the time of the Lime Fund sales, of a 'suspension from duty' (equivalent), and Jin Ok-dong, the bank president, of a 'reprimand warning.' Cho Yong-byeong, chairman of Shinhan Financial Group, was preliminarily notified of a minor disciplinary action, a 'cautionary warning.'

The disciplinary levels for financial company executives are divided into five stages: ▲recommendation for dismissal ▲suspension from duty ▲reprimand warning ▲cautionary warning ▲caution. Among these, reprimand warning and above are considered serious disciplinary actions. If the sanctions are finalized as is, reemployment in the financial sector will be prohibited for 3 to 5 years after the current term ends.

Within the financial sector, there is speculation that at least two to three disciplinary hearings will be held. The disciplinary committee's decision serves as an advisory opinion to the FSS governor. The final level of discipline is confirmed through the FSS governor's approval or through deliberation by the Securities and Futures Commission and resolution by the Financial Services Commission.