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Hana Financial, banking unit face probe into alleged hiring irregularities

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Hana Financial, banking unit face probe into alleged hiring irregularities

South Korea's Financial Supervisory Service established a special team to investigate alleged irregularities in hiring entry-level employees at Hana Financial Group Inc. and unit KEB Hana Bank, The Korea Herald reported March 13, citing officials.

The move came a day after FSS Governor Choe Heung-sik resigned amid allegations he was involved in the hiring irregularities during his tenure as president of Hana Financial Group. Yoo Kwang-yeol took over as acting governor of the FSS.

FSS Deputy Governor Choi Seong-il will head the team, which will look into allegations that KEB Hana Bank exempted the resume screening process for applicants recommended by senior staff members in 2013. The team will report the probe's findings directly to Kim Woo-chan, chief executive auditor, the publication reported, noting that the team will report any irregularities found during the probe to prosecutors.

The probe into hiring practices at Hana Financial and KEB Hana Bank is part of an ongoing regulatory drive against recruitment scandals at South Korean banks. In late 2017, the FSS began inspections at banks to look into possible influence-peddling in their hiring processes. The regulator handed over to prosecutors in late January 22 cases involving irregularities in recruitment at five commercial banks. Prosecutors also raided KEB Hana Bank's headquarters in early February as part of the probe.