[Apha Biz=(Chicago) Reporter Paul Lee] KB Kookmin Bank will undergo additional frequent inspections by the Financial Supervisory Service in the second half of this year.

There has been a case in which Kookmin Bank employees made a large amount of unfair profits using undisclosed information. It is unusual for the Financial Supervisory Service to conduct two frequent inspections on the same case of a financial company.

According to the financial sector on the 14th, the Financial Supervisory Service is expected to inspect Kookmin Bank further in connection with allegations of violating the ban on the use of undisclosed important information under the Capital Markets Act in the second half of the year. The Financial Supervisory Service is expected to look into the internal control system as well as investigating employees who took unfair advantage.

The Financial Supervisory Service has already conducted on-site inspections once between March and April in connection with the case. However, as the number of people who made unfair profits has increased significantly compared to the last on-site inspection, the government is considering conducting additional inspections. The schedule for occasional inspections has yet to be finalized, but it is expected to take place as soon as possible considering the gravity of the issue.

Earlier on the 9th, the Financial Supervisory Service notified the prosecution of allegations of unfair trade using undisclosed information by employees of Kookmin Bank's securities agency department as an emergency measure (fast track) for the chairman of the Securities and Futures Commission.

From January 2021 to last April, the employees obtained information on the size and schedule of the free capital increase of 61 listed companies and bought the stocks in the name of themselves and their family members.

Since then, the company has earned a total of 6.6 billion won in trading gains by selling stocks and realizing profits if stock prices rise due to the disclosure of free capital increase. Some of them delivered free capital increase information to colleagues, family members, relatives and acquaintances of other departments in the bank. The profits of these information recipients also amounted to about 6.1 billion won.

As a result, their total sales gains, tentatively tallied by financial authorities, are around 12.7 billion won. "The use of undisclosed information by bank executives and employees in charge of securities affairs is a serious issue that could undermine trust in the capital market," the financial authorities said in a press release at the time.

 

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