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[Alpha Biz= Reporter Kim Minyoung] Hanwha Investment & Securities Concealed Employee Document Forgery, Receives Institutional Warning from Financial Supervisory Service
Hanwha Investment & Securities has been issued an institutional warning by the Financial Supervisory Service (FSS) for concealing an employee's document forgery. The FSS announced on September 9 that it had taken disciplinary action, including suspension and reprimands, against the responsible employees.
According to the FSS, Hanwha Investment & Securities' Department A conducted an internal audit of Branch B from November 29 to December 12, 2018, and discovered that an employee had issued false account balance statements. Despite confirming that these issues warranted internal disciplinary action and reporting the forgery to authorities, the company chose to conceal the matter to avoid damage to its reputation and potential legal consequences.
Furthermore, when reporting to the Audit Committee in 2019, Hanwha Investment & Securities failed to provide complete documentation or accurate information regarding the internal audit results for Branch B. The audit results were falsely reported as having no significant issues in the 2018 semi-annual audit report submitted to the FSS.
In addition, Branch B's manager, C, failed to record a total of 22 orders (worth 980 million won) from six clients between December 26, 2016, and January 18, 2018. Under current law, financial investment firms are required to maintain transaction records for ten years.
C was also found to have received trading orders worth 76.8 million won from a client’s acquaintance without proper documentation or authorization from December 9, 2016, to July 4, 2017.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
