Punitive Measures
The Financial Authority has decided to make public the details of the punitive measures taken against Hana Bank President and CEO Kim Jong-jun in the wake of his refusal to step down after disciplinary action was imposed on him due to his involvement in savings bank irregularities.
According to the financial circle on April 22, the Financial Supervisory Service (FSS) made the decision when Kim revealed his intention to not resign until the end of the term even after receiving heavy punishment.
Therefore, the financial watchdog plans to reveal its disciplinary measures on its homepage swiftly so that everyone can see it.
This is not the first time for the office to disclose the details of punitive measures on a chief of a financial institution.
The watchdog intends to impose high intensity monitoring on how CEO risk affects the bank in case Kim Jong-jun sticks with his position after the disciplinary decision, in which case the repercussions might affect Hana Chairman Kim Seung-yu.
Kim, head of Hana Capital Co. when the irregularities were committed, allegedly invested 14.5 billion won (US$13.7 million) in a savings bank in 2011 using fabricated documents, skipping the approval process by the board of directors. Hana Capital failed to recover 6 billion won (US$5.76 million). Kim received an interrogatory warning from the FSS disciplinary review committee last week (April 14-18).
The incident pours salt into the wound because the bank is already in trouble, as it is under probe regarding its internal involvement with its KT ENS affiliate loan fraud, as well as Hana SK Card’s ATM hacking that led to the leakage of customer information.
The bank refused to elaborate on the latest scandal of the bank chief.