KB Financial head disciplined for Woori`s losses

SEOUL, Sept. 25 (Yonhap) -- South Korea's deposit insurer disciplined the chief
of KB Financial Group Inc. Friday for causing a state financial holding company
to fail to meet management goals for the fourth quarter of 2008.
Under the penalty, Hwang Young-key will be banned from taking executive posts at
six lenders for five years because of his responsibility for Woori Finance
Holdings Co.'s 664.8 billion won (US$555 million) loss in the October-December
period, the state-run Korea Deposit Insurance Corp. (KDIC) said.
It was the first quarterly loss since the first quarter of 2004 for Woori Finance
Holdings, majority owned by KDIC.
The fourth-quarter red ink resulted largely from Woori Bank's 1.62 trillion won
losses from investment in U.S. derivatives, incurred from 2005-2007 when Hwang
headed the lender, it said. Woori Bank is the flagship of the state holding
company.
KDIC's penalty comes after the Financial Services Commission, the nation's
financial watchdog, slapped a "suspension-of-duty" discipline on Hwang early this
month for inflicting the loss on Woori Bank.
On Wednesday, the KB Financial chief offered to step down, holding himself
responsible for Woori Bank's losses.
pbr@yna.co.kr
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