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[Alpha Biz= Paul Lee] SEOUL, October 30, 2025 — The Financial Supervisory Service (FSS) has imposed sanctions on Woori Bank for failing to promptly report disciplinary actions imposed by foreign regulators on its overseas subsidiaries, as well as for delayed disclosure of changes in subsidiary capital structures.
According to the FSS inspection report, three overseas affiliates (identified as D, B, and E) of Woori Bank were penalized four times by local financial authorities, yet the bank’s internal department reported these incidents between 220 and 554 days late. In addition, the same department delayed reporting a capital increase at subsidiary B by 83 days.
Under South Korea’s Banking Act, banks must immediately notify the FSS Governor when an overseas branch or subsidiary receives regulatory sanctions or when there is a change in subsidiary investment status.
The FSS also demanded that Woori Bank strengthen internal controls and employee rotation systems to prevent financial misconduct. The inspection found unclear criteria for exemptions from staff rotation, informal approval processes handled via email, and a lack of formal oversight for long-term staff in sensitive positions.
Furthermore, despite the high risk of fraud involving corporate seals and passbooks, the FSS discovered that two staff members were authorized to manage both, with the same individual allowed to oversee both seal and account book custody — a structural weakness that could lead to internal fraud.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
