From 2020 to recently, it has been identified that 21 financial companies and 129 employees were disciplined due to fund scandals such as Lime and Optimus.
According to data received by Yoon Chang-hyun, a member of the National Assembly's Political Affairs Committee from the Financial Supervisory Service on the 10th, regarding the Lime and Optimus private fund scandals, from 2021 to August this year, disciplinary procedures were completed for 21 financial companies (including duplicates for other disciplinary cases), and 129 employees were disciplined.
In the Lime scandal, Lime Asset Management was disciplined in 2020 with cancellation of institutional registration and other sanctions, and seven executives and employees, including the CEO, were disciplined with dismissal requests. Regarding sales companies, in 2021, Shinhan Financial Investment was suspended from some operations for six months and fined 1.8 billion KRW, and seven employees were disciplined including dismissal. Daishin Securities received disciplinary action including branch closures, and 12 employees were disciplined; KB Securities was suspended from some operations for six months and fined 550 million KRW, with seven employees disciplined including suspension.
The following year, Shinhan Bank was suspended from some operations for three months and fined 5.71 billion KRW, with 10 employees disciplined including salary reductions. Woori Bank was suspended from some operations for three months and fined 5.71 billion KRW, with four employees disciplined; Industrial Bank of Korea was suspended from some operations for one month and fined 4.71 billion KRW, with four employees disciplined; NongHyup Bank received an institutional caution and a fine of 415 million KRW, with 10 employees disciplined; Busan Bank received an institutional warning and four employees were disciplined. Sanctions against Hana Bank, Gyeongnam Bank, and others related to the Lime scandal are ongoing.
Regarding the Optimus scandal, in 2021, Optimus Asset Management was disciplined with license and registration cancellation and CEO dismissal requests, with three employees disciplined. The following year, NH Investment & Securities, a sales company, was suspended from some operations for three months and fined 5.17 billion KRW, with eight employees disciplined; Hana Bank was suspended from some operations for three months and two employees were disciplined.
In the Discovery scandal, the asset management company was suspended from some operations for three months in 2022, and three executives were disciplined. In the same year, disciplinary actions were taken against Hana Financial Investment (institutional warning, fine, and seven employees disciplined), Yuanta Securities (institutional warning, fine, and seven employees disciplined), and IBK Investment & Securities (institutional warning, fine, and nine employees disciplined).
Korea Investment & Securities was disciplined with an institutional caution, a fine, and nine employees disciplined related to the Pop Funding fund case. Sanctions by relevant institutions are also ongoing for platforms, Fidelis, Pop Funding funds, and others.
Recently, in July this year, Shinhan Bank was suspended from some fund-related operations including Yukyung Concierge for three months, and nine employees were disciplined.
As of August this year, 28 companies under inspection by the Financial Supervisory Service have completed inspections but disciplinary procedures are ongoing. Among them, inspections for 23 companies have exceeded 1,000 days since the inspection end date as of this month, but sanctions are still in progress.
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