South Korea’s Woori Financial Group is highly likely to drop its plan to raise an administrative action against the sanctions imposed by the Financial Services Commission (FSC) in November for the incomplete sales of Lime Asset Management funds.

Maeil Business Newspaper has learned Thursday that Woori Financial Group is likely to decide not to take legal action against the FSC’s disciplinary measures against Woori Bank that include a three-month suspension in new private equity fund sales and 7.66 billion won ($6.2 million) in fine for its involvement in the Lime fund fiasco.

It remains to be seen, however, whether Woori Financial Chairman Son Tae-seung will individually take any action against the FSC’s reprimand.

The sanctions against Woori Bank and Son were decided at a regular FSC meeting in November last year. They need to decide whether or not to appeal the case within 90 days from the day they were informed about it, which makes the deadline early next week.

“The bank has not yet appealed, and there is a possibility that it will not (at all),” said an unnamed official from Woori Financial Group.

Another unnamed official from the financial authority noted that the bank is highly likely not to take action.



The two candidates for Woori Financial Group’s next chairman - former FSC Chairman Yim Jong-yong and Woori Bank President Lee Won-duk - are also known to be passive about the bank’s legal action.

The stance has changed after Woori Financial Chairman Son decided to give up his consecutive term last month. The financial group sees that there would be no benefit in remaining at odds with the financial authority, sources said.

The Korean government and the ruling party have also stressed the importance of improving governance of companies with dispersed ownership and named financial holding companies as one of the main targets.

The executive recommendation committee of Woori Financial Group, in the meantime, will name a final candidate for the chairman after an interview on Friday with Yim, Lee, Shin Hyun-seok, head of Woori America Bank, and Lee Dong-yeon, former president of Woori FIS Co. Yim and Lee are seen as the strongest candidates, sources said.

By Chae Jong-won and Choi Jieun

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