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[Alpha Biz=(Chicago) Reporter Paul Lee] NH Nonghyup Bank was sanctioned by the financial authorities. Some branches of Nonghyup Bank have unfairly returned insurance contracts.
According to the financial authorities on the 25th, the Financial Supervisory Service imposed sanctions such as a fine of 34.7 million won along with institutional caution against Nonghyup Bank.
The Banking Act must comply with certain requirements, such as the resolution of the board of directors and the disclosure of the website, if a bank intends to transfer assets to a public interest corporation, which is a person related to the major shareholder, free of charge.
comply with the preliminary decision of the board of directors, the disclosure of the homepage, the report of the board of directors on the current status of free transfer and the inspection of appropriateness and evaluation results, the report of the Financial Supervisory Service, and the submission of the FSS on the details of income and use issued by public interest corporations in the process of donating 6.32115 billion won to the foundation, which is a related party of a major shareholder and a public interest corporation, in December 2018.
This violates the obligation to prohibit the transfer of assets to related parties of major shareholders under the Banking Act.
Nonghyup Bank also omitted some of the insurance contracts to be compared to contractors in the process of 20 policyholders signing new insurance contracts or canceling existing insurance contracts after signing new insurance contracts from June 2019 to December 2021 at 21 branches.
The insurance premium for unfair return contracts at 21 Nonghyup Bank branches is about 2.1 billion won, with Nonghyup Bank earning about 40 million won in fees, according to the FSS.
Nonghyup Bank also received 22 management precautions and 20 requests for improvement from the FSS due to lack of internal control devices and insufficient screening of real estate project financing (PF) loans.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
