Pension chief quits in the wake of Woori Bank losses scandal
Published: 12 Sep. 2009, 05:55
A veteran financier who headed the state-run pension corporation abruptly stepped down in the middle of his term yesterday.
Park Hae-choon, head of the National Pension Corporation, resigned in the aftermath of a decision by the nation’s financial watchdog earlier this week to reprimand senior bankers for investment losses at a state-owned bank.
The corporation said yesterday that Park had told Jeon Jae-hee, the minister of health and welfare, of his intention to quit.
According to the corporation, Park wanted to step down to refresh himself and seek a way to contribute to the nation and the society.
“I want to think about what I will do next while taking a rest. If possible, I want to contribute to developing my hometown,” Park was quoted as saying by the corporation.
Operations at the corporation are likely to face some disruption as a result of Park’s decision since he has only been in his position for 15 months.
The corporation said it will recruit a new head in consultation with the ministry. The process is expected to take about a month.
The National Assembly is scheduled to audit the pension corporation next month. The inspection is expected to proceed without a head to represent the pension funds.
Park was the head of Seoul Guarantee Insurance Company and LG Card after the foreign exchange crisis in the late 1990s. He was president of Woori Bank from March 2007 and took over at the pension corporation in June 2008. He is the first financier to lead a state-run fund.
Throughout his stint on pensions, Park tried to streamline the fund’s organization by shutting down 116 offices of the corporation. He was praised for the accumulated profits at the fund despite the global financial crisis last year.
However, speculation grew that Park was under pressure to step down after he, along with other bankers, was sanctioned by the Financial Supervisory Commission over derivatives investment losses.
In a related story, the Financial Services Commission upheld a penalty against Hwang Young-key, chairman of KB Financial Group, for losses worth $1.6 billion that occurred while he was in charge of Woori Finance Holdings, the country’s second largest financial giant.
The financial authorities also decided to reprimand 40 Woori executives and employees, both incumbent and former, for the losses. Among them was Park, who served as Woori Bank president after Hwang. The Financial Services Commission issued a warning to Park for having mishandled funds after Hwang left Woori Bank.
KB Financial Group will hold a board of directors meeting on Monday to decide Hwang’s fate. Following Park’s resignation, pressure is growing on Hwang since he received a heavier punishment for the investment losses.
By Ser Myo-ja [[email protected]]
Park Hae-choon, head of the National Pension Corporation, resigned in the aftermath of a decision by the nation’s financial watchdog earlier this week to reprimand senior bankers for investment losses at a state-owned bank.
The corporation said yesterday that Park had told Jeon Jae-hee, the minister of health and welfare, of his intention to quit.
According to the corporation, Park wanted to step down to refresh himself and seek a way to contribute to the nation and the society.
“I want to think about what I will do next while taking a rest. If possible, I want to contribute to developing my hometown,” Park was quoted as saying by the corporation.
Operations at the corporation are likely to face some disruption as a result of Park’s decision since he has only been in his position for 15 months.
The corporation said it will recruit a new head in consultation with the ministry. The process is expected to take about a month.
The National Assembly is scheduled to audit the pension corporation next month. The inspection is expected to proceed without a head to represent the pension funds.
Park was the head of Seoul Guarantee Insurance Company and LG Card after the foreign exchange crisis in the late 1990s. He was president of Woori Bank from March 2007 and took over at the pension corporation in June 2008. He is the first financier to lead a state-run fund.
Throughout his stint on pensions, Park tried to streamline the fund’s organization by shutting down 116 offices of the corporation. He was praised for the accumulated profits at the fund despite the global financial crisis last year.
However, speculation grew that Park was under pressure to step down after he, along with other bankers, was sanctioned by the Financial Supervisory Commission over derivatives investment losses.
In a related story, the Financial Services Commission upheld a penalty against Hwang Young-key, chairman of KB Financial Group, for losses worth $1.6 billion that occurred while he was in charge of Woori Finance Holdings, the country’s second largest financial giant.
The financial authorities also decided to reprimand 40 Woori executives and employees, both incumbent and former, for the losses. Among them was Park, who served as Woori Bank president after Hwang. The Financial Services Commission issued a warning to Park for having mishandled funds after Hwang left Woori Bank.
KB Financial Group will hold a board of directors meeting on Monday to decide Hwang’s fate. Following Park’s resignation, pressure is growing on Hwang since he received a heavier punishment for the investment losses.
By Ser Myo-ja [[email protected]]
with the Korea JoongAng Daily
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