Shinhan Bank Suspended from New Private Fund Sales for 3 Months Due to 'Lime Fund Incomplete Sales'

Fines Amounting to 5.7 Billion Won Also Imposed

[Asia Economy Reporter Yoo Je-hoon] On the 6th, Shinhan Bank received measures from financial authorities including a 3-month partial suspension of operations and a fine of 5.7 billion KRW in relation to the suspension of redemptions of Lime Asset Management's funds.

The Financial Services Commission announced at the 13th regular meeting that it resolved to take such actions against Shinhan Bank for violations of the Capital Markets Act, including improper solicitation of Lime funds, incomplete sales, and violations of investment advertisement regulations.

The partial suspension of operations is a sanction for incomplete sales, and Shinhan Bank will be prohibited from selling new private funds for three months. Additionally, a fine of 5.71 billion KRW was imposed for violations of the obligation to provide explanatory documents and investment advertisement regulations.

Sanctions against executives and employees delegated to the Financial Supervisory Service will be handled by the FSS.

The FSC stated, "Regarding violations of the obligation to establish internal control standards under the Financial Company Governance Act, we plan to handle these through separate deliberations including legal reviews of future judicial decisions on similar cases and comparisons among related agenda items."