FSS: "Hana Bank Private Equity Fund Mis-selling... Not a Matter to Hold Former CEO Accountable"

[Asia Economy Reporter Park Sun-mi] The Financial Supervisory Service (FSS) reiterated that it is not a matter to hold accountable Vice Chairman Ham Young-joo of Hana Financial Group, who was the president of Hana Bank at the time, for being excluded from the disciplinary committee regarding the Italy healthcare fund.

On the 7th, the FSS stated, "The disciplinary case related to the Italy healthcare fund was first submitted to the disciplinary committee in July and is currently under review," adding, "The proposed measures also include sanctions for acts of providing distorted information to investors, such as 'there is no loss unless Italy goes bankrupt' and 'early repayment within 12 months is certain.'"

However, the FSS explained that the main actors who provided distorted information were at the operational staff level, and the supervisors were at the executive level, so supervisory responsibility was not imposed on Vice Chairman Ham, who was the president at the time.

The FSS explained, "The reason for the difference in position regarding the responsibility for internal control negligence and incomplete sales is that the obligation to establish internal control standards is based on the Corporate Governance Act and lies with the top management, but the responsibility for launching and selling individual private equity funds is judged considering the internal approval regulations and the actual actions of related employees."

Civil organizations argue that Vice Chairman Ham should be included in the disciplinary targets regarding Hana Bank's incomplete sales of private equity funds. On the same day, FSS Governor Jung Eun-bo, when asked by reporters about the reason for excluding Vice Chairman Ham from the disciplinary targets after a meeting with CEOs of specialized credit finance companies, drew a clear line by saying, "It was an issue of incomplete sales by operational staff, and it was not a matter to hold Vice Chairman Ham responsible." Regarding the failure to conclude the disciplinary committee decision on Hana Bank on the 2nd, he said, "It was the decision of the disciplinary committee members."