FSC sanctions Woori Financial Group chair for improper sales of funds

Woori Financial Group Chairman Son Tae-seung [YONHAP]

The Financial Services Commission (FSC) on Wednesday sanctioned Woori Financial Group Chairman Son Tae-seung for improper sales of funds.

The FSC announced it agreed to give a reprimand warning to former executives of Woori Bank for the “incomplete sales of the Lime funds.”

A reprimand warning is the third-heaviest punishment on the regulator’s five-level punishment scale.

The punishment is in response to the selling of risky Lime Asset Management funds to retail customers. Many of these customers lost money after the funds were frozen.

Son was the head of Woori Bank, a group subsidiary, when the bank was marketing the Lime funds.

The warning bars Son from holding positions at financial companies for three years, although current terms can be completed.

Son’s term as the group chairman is scheduled to end in March.

The FSC decision will bar Woori Bank from selling new private equity funds for three months.

Woori Bank in July was handed a 7.66 billion won ($5.31 million) fine for its violations of investment advertisement and the duty to deliver investment prospectus.

Following the announcement, Woori Bank said it has not yet decided on a reaction plan.

The bank plans to “first thoroughly review related content and then respond,” it said in a statement.

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