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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Daol Savings Bank is under investigation over allegations that it provided improper financial support to its major shareholder, Daol Investment & Securities, during the 2022 Legoland liquidity crisis—raising concerns that the issue could affect the shareholder’s eligibility status.
According to a report by the Seoul Economic Daily on March 17, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit conducted raids on the headquarters of Daol Investment & Securities and Daol Savings Bank. Police are said to have secured evidence related to suspected violations of the Mutual Savings Bank Act.
Investigators are examining whether Daol Savings Bank may have provided indirect financial support to Daol Investment & Securities, which holds a 60.2% stake in the savings bank, when the brokerage faced liquidity pressure during the Legoland crisis.
Specifically, suspicions have been raised that Daol Savings Bank invested in wrap accounts and specified money trusts managed by iM Securities, with the funds ultimately flowing into Daol Investment & Securities.
Authorities, including the Financial Supervisory Service, are reviewing whether such transactions violated regulations that prohibit savings banks from providing financial benefits to their major shareholders.
A financial industry official noted, “Savings banks operate by taking deposits from customers and using them for lending and asset management. If those funds were improperly used to support a major shareholder, it would be a serious issue.”
Under the Enforcement Decree of the Mutual Savings Bank Act, maintaining eligibility as a major shareholder requires that there be no criminal penalties exceeding 10 million won for violations of financial regulations.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
