[Alpha Biz=(Chicago) Reporter Paul Lee] Following the embezzlement of 300 billion won, BNK Kyongnam Bank was sanctioned by financial authorities for illegal borrowed-name transactions by employees.

The Financial Supervisory Service said on the 28th that it has imposed institutional warnings and 110 million won in fines on Kyongnam Bank for incomplete sales of private equity funds and illegal borrowed-name transactions of employees on the 21st.

A, a former branch manager of Kyongnam Bank, made a total of 193 stock trading transactions in 53 days through an account under her mother-in-law's name, not her own name from April 2018 to July 2020. The total amount of sales is 213.3 million won and the principal investment is 40.8 million won.

Mr. A opened two securities accounts linked to the account under his mother-in-law's name without permission at the branch where he worked. It was decorated that the mother-in-law requested the opening of an account by copying, cutting and reusing a copy of the resident registration card. He even stamped his seal on the customer signature section.

Mr. A also violated the obligation to notify the seven quarterly sales details of the transaction.

Kyongnam Bank sold 207 private equity funds with a total subscription amount of 37.63 billion won to 195 general investors from March to August 2019, failing to comply with its obligation to explain.

In addition, the sanctions included a violation of the obligation to report collateral loans for equity securities exceeding 20% and a violation of the obligation to secure safety in electronic financial transactions.

Meanwhile, Kyongnam Bank was put on trial in September after an executive managing real estate project financing (PF) caused a total of 308.9 billion won in embezzlement.

 

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