The Financial Services Commission partially suspends sales of private equity funds
When he takes a lawsuit against President Son
It can be reconfirmed until a definitive sentence
On the 9th, Woori Financial Group president Son Tae-seung was sentenced to severe punishment equivalent to a “liability warning” in connection with the suspension of the redemption of the Lime Asset Management private equity fund. A red light also lit on the road to the reconfirmation of President Son, with his mandate expiring in March next year.
The Financial Services Commission held a regular meeting on the same day and announced that it had decided to take such measures against President Son following the investigation by the Financial Supervisory Service into the incomplete sale of lime funds. This is the first year and six months since the Financial Supervisory Service’s Sanctions Resolution Committee decided to severely punish Son in connection with the lime fund crisis in April last year. Woori Bank has decided to suspend for three months some commercial operations that prohibit new sales of private equity funds. A total of 7.66 billion won in fines for violating the obligation to provide instructions had previously been imposed on Woori Bank in July.
The Lime incident occurred in July 2019, when allegations that Lime Asset Management was illegally managing yields by conveniently trading convertible bonds (CBs) of KOSDAQ companies and the share price in funds managed by Lime Asset Management plummeted. was suspended from ransom after October 2019. There were 4,473 victims and the damage was 1.6 trillion won.
The Woori Bank, of which Son was president, sold a lime fund worth 357.7 billion won, the largest of the banks. Subsequently, the Financial Supervisory Service decided that Woori Bank violated the prohibition of unfair solicitation under the Capital Market Act by selling the Lime Fund without adequately explaining it to consumers even though it was aware of the insolvency of the Lime Fund. The disciplinary action against executives and executives was finalized three years after the accident that caused the greatest damage in the history of the fund crisis, which was the decision of the Financial Services Commission that day.
President Son could finish his term until March next year, but he cannot be reconfirmed at this time. The level of sanctions against financial company executives is divided into five levels: recommendation of dismissal, suspension of employment, warning of reprimand, warning of caution and caution. This is because if you receive more than one reprimand notice, you will be restricted from employment in financial institutions for 3-5 years.
However, the financial investment industry believes that President Son is very likely to bring an administrative lawsuit. If President Son issues an injunction and the court sues him, the disciplinary effect of the FSC will cease.
The song of the journalist Soo-yeon
