Watchdog issues warnings to Chinese banks in Korea

Home > Business > Finance

print dictionary print

Watchdog issues warnings to Chinese banks in Korea

The logo of Industrial and Commercial Bank of China (ICBC) shown at its branch in Beijing [REUTERS/YONHAP]

The logo of Industrial and Commercial Bank of China (ICBC) shown at its branch in Beijing [REUTERS/YONHAP]

 
The financial watchdog warned Chinese banks operating in Korea over their violation of duty in reporting corporate information.
 
The Financial Supervisory Service (FSS) informed the Seoul offices of the Industrial and Commercial Bank of China (ICBC), the Agricultural Bank of China and China Construction Bank to take corrective measures on a voluntary basis over their violation of disclosure and reporting obligations, according to local media reports citing financial sector sources.
 
The order was issued after the FSS inspected the Chinese state-run banks.
 
The Seoul branch of the ICBC failed to report to authorities or file disclosures on the appointment or removal of executives four times in 2018 and seven times between 2020 and 2021. Financial firms are required to notify the FSS within seven working days when an executive resigns or is appointed.
 
The ICBC also failed to report to local authorities in a timely manner 43 loans secured by equity securities exceeding 20 percent of certain corporations’ shareholdings.
 
Agricultural Bank of China also violated the reporting obligation on nine loans secured by equity securities exceeding 20 percent, while China Construction Bank failed to report 45 cases of similar loans in a set period. China Construction Bank also did not report to the FSS after it appointed new local managers in 2020 and last year.
 
Meanwhile, Chinese financial authorities imposed a total of 17.4 million yuan ($2.4 million) in fines on the Chinese subsidiaries of Hana Bank, Woori Bank and Industrial Bank of Korea last year.
 
The largest penalty, amounting to 15.76 million yuan, was levied on Hana Bank's Chinese subsidiary for negligence in handling foreign currency payment guarantees. It is the highest penalty imposed on Hana Bank by an overseas financial authority since its merger with Korea Exchange Bank in 2015.

BY SHIN HA-NEE [[email protected]]
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)