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Woori Financial chief files for court injunction against reprimand

All News 16:10 March 09, 2020

SEOUL, March 9 (Yonhap) -- The head of South Korea's Woori Financial Group has sought a court injunction against the financial watchdog's recent reprimand over improper selling of derivatives-linked products, people familiar with the issue said Monday.

Woori Financial Group Chairman Sohn Tae-sung filed for the injunction with the Seoul Administrative Court. He also filed a separate lawsuit calling for the nullification of the disciplinary action by the Financial Supervisory Service (FSS), they said.

Woori Financial Group said it could not confirm Sohn's legal actions.

Woori Financial chief files for court injunction against reprimand - 1

The move came four days after the FSS informed Sohn of its disciplinary action against him over the alleged misselling of derivative-linked products.

The so-called derivatives-linked fund (DLF) products were designed to return large profits when the interest rates of specific countries, including Britain and Germany, stayed above a certain level.

Many South Korean consumers have reported losses of up to or over 90 percent of their investments after interest rates or bond yields in the major economies plunged.

The injunction, if granted, could clear hurdles for Sohn to win a second term at Woori Financial Group's general shareholders' meeting on March 25.

In December, Woori Financial Group named Sohn to lead the group for another three-year term.

Last week, the Financial Services Commission imposed a penalty of 19.71 billion won (US$16.3 million) on Woori Bank and 16.78 billion won on Hana Bank over improper selling of derivatives-linked products.

The commission also banned the two commercial banks from selling private equity funds for six months.


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