South Korea's Financial Supervisory Service recently notified DGB Financial Group Co. Ltd. that it will not grant approval for the company's acquisition of HI Investment & Securities Co. Ltd. until governance issues involving Chairman and CEO Park In-gyu are resolved, FNTIMES reported March 26, citing an FSS official.
"There is an understanding with management that approval is pending the resolution of governance concerns," the official said.
DGB Financial agreed to acquire an 85.3% stake in HI Investment & Securities from Hyundai Heavy Industries Co. Ltd. in November 2017.
Park is facing an ongoing criminal probe over allegations of embezzlement and his personal involvement in hiring irregularities. He announced his resignation from his position as Daegu Bank Ltd. CEO and also offered to step down as CEO of the parent group sometime in the first half.
The FSS official said Park's resignation as group CEO will not clear the way for the regulator's approval of the HI Investment & Securities deal because that would depend on the outcome of the ongoing criminal investigation, FNTIMES said.