Financial Supervisory Service Suspends Part of Hana Bank's Operations for 3 Months over Private Fund Mis-selling

[Asia Economy Reporter Song Hwajeong] The Financial Supervisory Service (FSS) has decided to recommend to the Financial Services Commission (FSC) a three-month partial suspension of operations and the imposition of fines on Hana Bank in connection with the incomplete sales of private equity funds.

On the 27th, the FSS held a disciplinary review committee meeting to deliberate on the comprehensive inspection results and proposed measures for Hana Bank. This was the third disciplinary review following those held in July and December of last year.

Since last year, the FSS has held two disciplinary reviews related to private equity fund incidents such as Lime and Optimus but was unable to reach a conclusion.

At this disciplinary review, it was resolved to recommend to the FSC a three-month partial suspension of operations and the imposition of fines on Hana Bank for violations including incomplete sales of 11 types of private equity funds. Additionally, disciplinary actions ranging from reprimands to dismissal will be taken against related executives and employees.

The disciplinary review did not cover violations related to the obligation to establish internal control standards, which fall under the Governance Act violations.

The FSS explained, "Considering that the subject of this recommendation involves a significant issue causing social controversy due to multiple consumer damages, we have held two disciplinary reviews so far and thoroughly listened to statements, explanations, mutual rebuttals, and counter-rebuttals from numerous company officials and the inspection department. We have carefully examined all relevant facts and evidence and reached this decision through in-depth deliberation."

Sanctions against Hana Bank will be finalized through the approval of the FSS Governor, review by the Securities and Futures Commission, and resolution by the FSC for each subject of the measures.