Search

NEWS
RETAIL BANKING | Cesar Tordesillas, Korea
Published: 23 May 12
1144 views


Hana raided over savings bank scandal

The main office of Hana Capital in southern Seoul have been raided by prosecutors for its role in the Mirae Savings Bank scandal.

 

They wanted to check out out whether former Hana Financial Group Chairman Kim Seung-yu had pressured the subsidiary to participate in a capital increase for Mirae Savings Bank.

The prosecution said it may summon the former chairman, and Kim Jong-jun, CEO of Hana Bank, for questioning over their roles in a 14.5 billion won investment by Hana Capital into Mirae in September last year.

The two were suspected of approving Mirae Chairman Kim Chan-kyung’s request, though the company was not qualified to receive any money. The prosecution declined to reveal details of the ongoing investigation. The Mirae chairman, now under arrest, told prosecutors about the former Hana chairman’s involvement.

The money Hana Capital invested in Mirae was backed by five paintings owned by the company, stocks of Chairman Kim Chan-kyung, his apartment in Apgujeong-dong in southern Seoul and the main office of Mirae in Secho-dong, southern Seoul as collateral.

However, experts say the real estate has no real value as they have already been seized by other creditors. They also argue that it is not common practice for paintings to be used as collateral because their value changes so quickly and erratically.

Experts say the scandal will negatively affect the group if it turns out that Kim Seung-yu was involved in bribery. Foreign investors have about a 62 percent stake in Hana Financial, and the corruption scandal may see them sell their stocks due to business uncertainties caused by the fallout, according to observers.

For more, click here.



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: Korea savings bank scandal, Hana Financial, bank raid, capital increase, Mirae Savings Bank

PRINT ISSUE »

Subscribe Now
Banks are a-changin’: Omni-channel is the way to go for Asian banks

16 views

Indonesian banking sector edges near crunch time for consolidation

11 views

Breaking the tethers of Asia’s payments revolution

7 views

MOST READ EXCLUSIVES

BNP Paribas Wealth Management Singapore's new CEO eyes rapid development of digital solutions

BNP Paribas Wealth Management Singapore\'s new CEO eyes rapid development of digital solutions

Ernest Leung plans to invest more in technology.

by STAFF REPORTER
13 May 2015 | 731 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter