South Korea's Financial Supervisory Service has filed criminal complaints against KEB Hana Bank, KB Kookmin Bank, Daegu Bank Ltd., BNK Busan Bank Co. Ltd. and Kwangju Bank Ltd. in connection with hiring irregularities, The Chosun Ilbo reported Jan. 31.
A close relative of KB Financial Group Inc. CEO Yoon Jong-kyoo was cited among those who obtained employment through inside-track preferential treatment. The group is the parent company of KB Kookmin Bank.
The Financial Supervisory Service, or FSS, said it uncovered 22 suspected cases at unnamed banks through a probe conducted between January and December 2017.
In its complaints, the regulator cited KEB Hana Bank for six cases of nepotism related to its hiring of new employees in 2016. KB Kookmin Bank was cited for three cases in 2015, including the hiring of Yoon's nephew.
The other three banks similarly provided favorable treatment for job candidates with connections to people of influence.
The FSS plans to follow through with regulatory penalties based on prosecution findings, including recommending errant financial companies dismiss their CEOs.
KEB Hana Bank, Daegu Bank, BNK Busan Bank and Kwangju Bank are units of Hana Financial Group Inc., DGB Financial Group Co. Ltd., BNK Financial Group Inc. and JB Financial Group Co. Ltd., respectively.
