Woori Bank Will Not File Lawsuit Over Lime Sanctions

"Acceptance of Financial Authorities' Sanctions... Strengthening Internal Controls"

[Asia Economy Reporter Kwon Hyun-ji] Woori Bank announced on the 7th that it will not file an administrative lawsuit against the financial authorities' sanctions related to the Lime Fund incident.

In a press release on the same day, Woori Bank stated, "We will accept the financial authorities' sanctions related to the Lime Fund," and added, "We will do our best to enhance customer trust by further strengthening the major improvements and innovations in internal controls and financial consumer protection systems that we have been independently promoting regarding private equity funds."

On November 9 last year, the Financial Services Commission imposed a three-month suspension on Woori Bank's new sales of private equity funds and fined 7.66 billion KRW for the incomplete sales of the Lime Fund. At that time, Son Tae-seung, then CEO of Woori Bank and Chairman of Woori Financial Group, was also held responsible for fund sales and received a severe disciplinary action of a 'reprimand with warning.'

That day was the final deadline to decide whether to file a lawsuit against the FSC sanctions. According to the Administrative Litigation Act and the Administrative Appeals Act, if the sanctions are not accepted, an administrative lawsuit must be filed within 90 days from the date of notification.

It is not yet known whether Chairman Son will personally file a lawsuit against the 'reprimand with warning' disciplinary action. The reprimand with warning is a severe disciplinary action that restricts employment at financial institutions for 3 to 5 years. A Woori Bank official said, "Since we do not know how Chairman Son's over 30 years of industry experience will be used, there is a possibility that he may file (a lawsuit)."

Son Tae-seung, Chairman of Woori Financial Group, is attending the Ministry of Economy and Finance-Financial Institutions meeting held at the Bankers' Hall in Myeong-dong, Jung-gu, Seoul on the 27th, listening attentively to the remarks of Deputy Prime Minister for Economy Choo Kyung-ho. The meeting was attended by Deputy Prime Minister Choo, Kim So-young, Vice Chairman of the Financial Services Commission, and the chairmen of the five major financial holding companies including KB, Shinhan, Hana, Woori, and NongHyup. Photo by Kim Hyun-min kimhyun81@