Kakao Bank was sanctioned by the Financial Supervisory Service for ‘institutionalism’ and fines for negligence due to problems in the overseas remittance process.
According to the financial industry on the 29th, the Financial Supervisory Service (FSS) issued an ‘institutionalism’ in its recent inspection of Kakao Bank after it found violations of the obligation to secure the safety of electronic financial transactions, violations of the obligation to prohibit credit extension of major shareholders, and violations of the obligation to notify the provision of financial transaction information.
Previously, it was discovered that Kakao Bank neglected to test the verification of the program while promoting the reorganization of foreign currency remittance and that some transactions were not processed properly. In addition, it was also revealed that the Internet-only bank violated the fact that it was not allowed to extend credit to the major shareholder and made loans to the executives of affiliates belonging to the major shareholder.
As a result, Kakao Bank was fined 76.6 million won and 75 million won, respectively, along with institutionalism. One executive and six employees who were found to be in violation were given ‘caution’ measures, the two employees were notified of the illegality or unfairness of the retiree, and the seven employees were suggested to be fined for negligence.
In addition, Kakao Bank found problems such as delay in registration as a result of providing information by the person in charge of financial transaction information, and it was also found that the audit committee report was submitted late. It was also pointed out that the company did not report to the Financial Supervisory Service within 10 days after changing the terms and conditions for adding a prepaid electronic payment method.
In addition, the Financial Supervisory Service notified 26 cases of improvement in 18 cases of ‘management caution’ due to insufficient protection of financial consumers related to foreign exchange remittances.