South Korea's Financial Supervisory Service imposed sanctions on two would-be investment banks following a Nov. 30 review of the lenders, Yonhap News Agency reported.
The FSS issued an institutional caution to Mirae Asset Daewoo Co. Ltd. and ordered employee sanctions, citing consumer protection rule violations in connection with sales of certain derivatives to investors. The FSS will also recommend that the Financial Services Commission imposes a fine.
The FSS issued stiffer penalties to KB Securities Co. Ltd. with an institutional warning and employee sanctions in connection with an intragroup financing deal that violated a ban on lending to a major shareholder.
Both Mirae Asset Daewoo and KB Securities were granted investment banking licenses by the FSC on Nov. 13.
KB Securities is a unit of KB Financial Group Inc.
