Son Tae-seung, Chairman of Woori Financial Group, Wins Consecutive Victories in 1st and 2nd Trials of 'DLF Disciplinary Cancellation Lawsuit'

[Asia Economy Reporter Song Seung-seop] Sohn Tae-seung, Chairman of Woori Financial Group, won the appeal in the disciplinary cancellation lawsuit he filed, claiming that the disciplinary warning issued by the Financial Supervisory Service (FSS) was unjust, following the first trial.

The Administrative Division 8-1 of the Seoul High Court ruled at the 2 PM hearing on the 22nd, "The defendant's (FSS) appeal is dismissed." In the first trial, the court also ruled in favor of Chairman Sohn, stating that "the FSS misunderstood the law and constituted the grounds for the disposition beyond the scope permitted by law."

The FSS confirmed that there was incomplete sales during the launch and sale of overseas interest rate-linked derivative-linked funds (DLF) at Woori Bank, and issued a "disciplinary warning" to Chairman Sohn, who was the bank president at the time, citing responsibility for internal control. Disciplinary actions above a warning restrict reappointment and employment in the financial sector.

The second trial began with the FSS's appeal. Both sides fiercely contested the extent to which responsibility for internal control could be imposed, as in the first trial. The FSS argued that if standards for effective operation of internal control were not established, it was the CEO's responsibility, while Chairman Sohn's legal counsel claimed the disciplinary action was baseless.