ID :
100148
Fri, 01/15/2010 - 00:47
Auther :
Shortlink :
https://www.oananews.org//node/100148
The shortlink copeid
FSS, BOK conduct joint probe into KB Financial`s alleged irregularities
(ATTN: ADDS details in para 3-8, 11)
SEOUL, Jan. 14 (Yonhap) -- South Korea's financial market regulator and the
central bank launched a joint probe Thursday into the nation's top financial
company KB Financial Group Inc. over allegations of irregularities in the firm's
investments and its outside board.
The Financial Supervisory Service (FSS) sent 42 inspectors to the headquarters
and the computer systems center of KB Financial and its flagship unit Kookmin
Bank in Yeouido, central Seoul. The probe is expected to last through Feb. 5.
The financial regulator will look into whether KB's loss-making investments in
Kazakhstan's Bank Center Credit and its issuance of US$1 billion in covered bonds
in May last year were made in violation of financial market regulations which
govern risky transactions by financial firms.
Investigators will also look into allegations that KB illegally extended the
tenure of its board members.
"The FSS will look into overall business practices at KB Financial," said Kim
Young-dae, chief of the FSS's banking service bureau. He declined to elaborate on
the charges being investigated.
The Bank of Korea also dispatched a nine-member team for the four-week audit and
is expected to look into Kookmin Bank's foreign-exchange operations and risk
management procedures.
The central bank joined the FSS probe after the regulator agreed to the BOK's
rights to conduct a joint inspection last year.
The latest move is the FSS's first probe into one of the nation's four-largest
financial firms, which also control the top four lenders, after the watchdog said
in December last year it will launch a full-scale inspection of the four groups
every year from 2010.
The audit came amid market speculation that the financial authorities may have
influenced Kookmin Bank chief Kang Chung-won's resignation on Dec. 31 as chairman
of the parent company. Kang cited the interests of the group when he stepped
down, amid scrutiny by the regulator over alleged wrongdoings by the group and
its outside board when electing Kang to the top position.
The FSS is forecast to come up with a final report based on its findings sometime
around May. Kang could be prohibited from taking an executive position at a
financial holding firm or a bank, the heaviest punishment meted out by the
regulator. Kang's term at Kookmin Bank ends in December.
pbr@yna.co.kr
(END)
SEOUL, Jan. 14 (Yonhap) -- South Korea's financial market regulator and the
central bank launched a joint probe Thursday into the nation's top financial
company KB Financial Group Inc. over allegations of irregularities in the firm's
investments and its outside board.
The Financial Supervisory Service (FSS) sent 42 inspectors to the headquarters
and the computer systems center of KB Financial and its flagship unit Kookmin
Bank in Yeouido, central Seoul. The probe is expected to last through Feb. 5.
The financial regulator will look into whether KB's loss-making investments in
Kazakhstan's Bank Center Credit and its issuance of US$1 billion in covered bonds
in May last year were made in violation of financial market regulations which
govern risky transactions by financial firms.
Investigators will also look into allegations that KB illegally extended the
tenure of its board members.
"The FSS will look into overall business practices at KB Financial," said Kim
Young-dae, chief of the FSS's banking service bureau. He declined to elaborate on
the charges being investigated.
The Bank of Korea also dispatched a nine-member team for the four-week audit and
is expected to look into Kookmin Bank's foreign-exchange operations and risk
management procedures.
The central bank joined the FSS probe after the regulator agreed to the BOK's
rights to conduct a joint inspection last year.
The latest move is the FSS's first probe into one of the nation's four-largest
financial firms, which also control the top four lenders, after the watchdog said
in December last year it will launch a full-scale inspection of the four groups
every year from 2010.
The audit came amid market speculation that the financial authorities may have
influenced Kookmin Bank chief Kang Chung-won's resignation on Dec. 31 as chairman
of the parent company. Kang cited the interests of the group when he stepped
down, amid scrutiny by the regulator over alleged wrongdoings by the group and
its outside board when electing Kang to the top position.
The FSS is forecast to come up with a final report based on its findings sometime
around May. Kang could be prohibited from taking an executive position at a
financial holding firm or a bank, the heaviest punishment meted out by the
regulator. Kang's term at Kookmin Bank ends in December.
pbr@yna.co.kr
(END)
