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[Alpha Biz=(Chicago) Reporter Kim Jisun] The suspension of execution filed by KB Securities CEO Park Jung-rim, who was severely punished by financial authorities over the incomplete sale of Lime Fund, was accepted.
The Seoul Administrative Court Administration Department 4 (Presiding Judge Kim Jung-joong) cited CEO Park's application against the Financial Services Commission on the 21st to suspend the execution of his duties.
Earlier, the Financial Services Commission held a regular meeting on the 29th of last month and suspended CEO Park for three months for violating his obligation to set internal control standards for incomplete sales of private equity funds.
The level of sanctions against executives of financial companies is divided into five stages: ▲ cautionary warning ▲ reprimand warning ▲ suspension of duties ▲ recommendation for dismissal. Executives who receive more than a reprimand warning will be restricted from finding jobs at financial firms for three to five years.
CEO Lee E-bak filed an application for suspension of disciplinary action and a lawsuit on the merits on the 1st, saying the Financial Services Commission's disposition was excessive.
During the hearing for the suspension lawsuit held on the 15th, Park's representative claimed that the evaluation of the internal control standards conducted by the financial authorities before the Lime crisis was "appropriate" and that it was set as a detailed standard after the financial accident and used as the basis for the reason for the disposal.
On the other hand, the Financial Services Commission countered that Park's suspension of duties, whose term ends at the end of this month, was significantly less than 10 days, causing unrecoverable damage and that internal control standards were not properly prepared.
Meanwhile, Park voluntarily resigned from the post of head of KB Financial Group's general affairs division (capital market, CIB, AM division), capital market division and outside director of the Korea Exchange on the 30th of last month after being disciplined.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
