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[Alpha Biz=(Chicago) Reporter Paul Lee] Three Chinese banks operating in Korea have been sanctioned by the Financial Supervisory Service for violating their reporting obligations.
According to the financial sector on the 23rd, the Financial Supervisory Service imposed sanctions on executives and employees during its inspection of the Industrial Bank of China, the China Agricultural Bank and the Seoul branch of the China Construction Bank after they found that they violated their obligation to disclose and report the appointment and dismissal of executives or violated their obligation to report more than 20% of equity securities mortgage loans.
If financial companies appoint or dismiss executives, they must report them to the head of the Financial Supervisory Service within seven business days, but the Seoul branch of the Industrial Bank of China did not report four in January ∼ March 2018 and seven in August ∼ September 2021 within the deadline or disclose them on the website of the Korea Federation of Banks.
However, some point out that the sanctions imposed by domestic financial authorities are lighter than those of China. Last year, Chinese financial authorities imposed a total of 17.44 million yuan (about 3.1 billion won) on local subsidiaries of Woori Bank, Hana Bank and IBK Industrial Bank of Korea, citing reporting errors and negligence in handling foreign currency payment guarantees.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
