[Alpha Biz=(Chicago) Reporter Paul Lee] The Financial Supervisory Service imposed sanctions on IBK Industrial Bank of Korea, which paid retirement benefits to users, not workers, saying it violated the responsibility of retirement pension operators.

According to the Financial Supervisory Service (FSS) on the 25th, supervisory authorities imposed a fine of 50 million won and institutional sanctions on the Industrial Bank of Korea on the 20th for violating the responsibilities of retirement pension operators. One executive was also warned, and one employee was notified of the need for self-handling.

The bank shall pay retirement benefits to the Individual Retirement Pension (IRP) account designated by the subscriber or the subscriber contribution account of the Small and Medium Business Retirement Pension System, where a reason for the retirement benefit of a retirement pension subscriber arises pursuant to the Workers' Retirement Benefit Guarantee Act.

However, 234 branches of the Industrial Bank of Korea paid about 4.3 billion won in retirement pension reserves to users' accounts, rather than those designated by retirement pension subscribers, for 474 cases of reasons for retirement benefits from May 9, 2018 to December 4, 2020.

Another reason for the sanctions is that 112 IBK branches paid about 1.8 billion won in retirement pension reserves to users' accounts, rather than those designated by subscribers, for 188 reasons for paying retirement benefits after receiving an administrative interpretation from the Ministry of Employment and Labor that it was impossible to pay retirement benefits to users.

 

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