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South Korean regulator finalizes sanctions on Tongyang Life over loan fraud case

South Korea's Financial Supervisory Service finalized sanctions on Tongyang Life Insurance Co. Ltd. in connection with a loan fraud case, Yonhap News Agency reported May 11.

The penalties include a warning issued to the Anbang Insurance Group Co. Ltd. unit and cautions issued to responsible executives and employees, but no partial business suspension. The regulator also did not disclose the names of the executives and employees that received a caution.

In March, the FSS gave the company a prior notice on upcoming disciplinary action, including a partial business suspension and employee sanctions. The FSS did not explain why it did not impose a partial business suspension on the company in the finalized penalties.

Tongyang Life lost most of 380 billion won worth of loans it extended to meat distributors using inflated valuations of imported meat as collateral in 2016. The company did not discover the loan fraud until late 2016.

As of May 10, US$1 was equivalent to 1,066.18 South Korean won.