KB Securities CEO Park Jung-rim
Suspended for Three Months
Expected to Step Back from Frontline Management
The Financial Services Commission (FSC) has finalized the decision to suspend Jeong Rim Park, the first female CEO of a securities firm in Korea, KB Securities, from her duties for three months due to her failure to establish internal control standards and provide leveraged funds to the Lime Fund, which is related to the Lime Fund scandal.
Sanctions for financial company executives are divided into five stages: caution, cautionary warning, reprimand warning, suspension of duties, and recommendation for dismissal. Financial company executives who receive a reprimand warning or higher face employment restrictions in the financial industry for 3-5 years.
The FSC has imposed a three-month suspension on Park Jung-rim, CEO of KB Securities. This is a higher level of sanction than the reprimand warning issued by the Financial Supervisory Service.
As a result, expectations are that CEO Park will not complete her term by the end of this year and will step back from frontline management. She is also likely to resign from her current position as an external director of the Korea Exchange.
CEO Park became the first female CEO of a securities firm when she was inaugurated in 2019.
She led the Wealth Management (WM) division and achieved rapid growth for the company. The company raised its net income from KRW 189.7 billion ($160 million) in 2018 to KRW 600 billion ($507 million) in 2021. The WM assets under her management also increased more than twice during her term, from KRW 20.4 trillion ($17.2 billion) before her inauguration to over KRW 50 trillion ($42.3 billion) in the third quarter of this year.
By. Han Ji Myeong
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