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(Photo = Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] The Financial Supervisory Service (FSS) is set to begin a regular inspection of KB Financial Group and KB Kookmin Bank on August 22, which will run until October 3. The inspection, involving around 40 personnel, will focus on several key areas:
Internal Controls: The FSS will scrutinize the internal controls of KB Financial and KB Kookmin Bank, particularly in light of recent issues such as the incomplete sale of Hong Kong H Index-linked securities (ELS) and various financial misconducts including embezzlement, breach of trust, and fraudulent loans.
Historical Issues: The inspection will revisit incidents that occurred since the last inspection three years ago, including:
The misuse of undisclosed information by staff in the securities agency of KB Kookmin Bank last year, resulting in substantial illicit gains.
Three cases of loan fraud this year, with total losses amounting to 48.8 billion won.
High-Risk Product Sales: The FSS will evaluate practices related to the sale of high-risk financial products, such as the significant volume of Hong Kong H Index ELS sold by KB Kookmin Bank.
This marks the first regular inspection of KB Financial and KB Kookmin Bank since June-July 2021.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
