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South Korean regulator flags alleged hiring irregularities at Shinhan Financial

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South Korean regulator flags alleged hiring irregularities at Shinhan Financial

South Korea's Financial Supervisory Service sent 22 cases of alleged hiring irregularities at units of Shinhan Financial Group Co. Ltd. to prosecutors for further investigation, Yonhap News Agency reported May 11, citing unnamed officials.

The report came after the FSS said in April that it will look into cases involving the employment of children of top executives at Shinhan Bank Co. Ltd., Shinhan Card Co. Ltd. and Shinhan Capital Co. Ltd. after receiving whistleblower allegations.

The FSS said it found 22 cases of alleged hiring irregularities at Shinhan Financial's banking, insurance and credit-card units between 2013 and 2017. Shinhan Bank, for instance, allegedly hired 12 entry-level workers related to the bank's executives and influential officials in 2013 even after they were disqualified during the hiring process, according to the report.

In addition, the FSS found irregularities in 10 hiring cases at Shinhan Financial's credit-card and insurance units.

Shinhan Financial is not the only South Korean financial group facing a regulatory probe into its past hiring practices. As part of its industrywide initiative, the FSS in February filed criminal complaints against KEB Hana Bank and five other banks after uncovering 22 suspected cases at unnamed banks during an investigation conducted between January and December 2017.