Seoul High Court upholds ruling in favor of Woori Financial Group

Woori Financial Group Chairman Son Tae-seung speaks at a press conference held in central Seoul on July 21. [NEWS1]

The Seoul High Court upheld the decision to rule in favor of Woori Financial Group Chairman Son Tae-seung in his appeals trial on the improper selling of high-risk derivative-linked funds (DLFs) by Woori Bank.

The Financial Supervisory Service (FSS) had reprimanded the chairman, who was the CEO of Woori Bank when the bank sold DLFs, in June 2020. The FSS had held the bank’s CEO responsible for failing to monitor the high-risk investment products from being released and sold to individual customers who lack expertise in the instruments.

The FSS reprimand prohibits a person from working at financial companies for at least three years.

The FSS reprimanded Son on five counts, including lack of the supervision system and risk management.

The court did not approve four out of the five counts FSS had brought up in the first trial last year.

Woori Financial Group said Friday that it respects the court's judgment and will thoroughly review the outcome.

BY JIN MIN-JI [jin.minji@joongang.co.kr]