The pictures shows automated teller machines run by commercial banks in South Korea. (Yonhap)
The financial and banking sectors have seen a significant jump in the amount of fines imposed on companies that have violated domestic laws in recent years, but top officials responsible for financial irregularities have received relatively light punishments, data showed Wednesday.
According to a report released by corporate data tracker CEOScore, some 33.5 billion won ($27 million) in fines were levied on financial and banking firms involved in illicit activities in 2019, up 122.4 percent from 2017. The data is based on regulatory filings of 218 companies reported to the state watchdog Financial Supervisory Service.
By segment, the banking industry was fined 8.8 billion won, which accounted for 25.6 percent of all fines, followed by stock brokerages with 8.6 billion won, savings banking with 8.3 billion won and life insurance with 4.9 billion won.
Commercial banks saw their penalty anounts increase by 84.9 billion won over the two years while fines for life insurance firms dropped by 4.6 billion won during the same period. Daegu-based Cham Savings Bank was levied the highest fine of 4.9 billion won.
The number of cases in which companies were penalized for financial irregularities stood at 310, up 19.7 percent from 2017, while 286 punitive measures were taken against executives and employees.
Many of the officials involved received a light slap on the wrist with mere warnings, the mildest available punishment in the local market.
By Kim Young-won (
wone0102@heraldcorp.com)