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omonatheydidTHE chairman of a small South Korean bank was found dead yesterday in what appeared to be the third suicide by an executive of one of the nation's troubled savings banks in recent months.
The death of Kim Hak-heon, chairman of Ace Mutual Savings Bank, comes as prosecutors are investigating allegations of illegal lending and bribery in the savings-bank industry.
Mr Kim was due to be questioned by prosecutors yesterday over allegations of illegal lending and accounting fraud, according to police.
Prosecutors didn't return calls seeking comment.
Operations at Ace Mutual Savings Bank, along with six other savings banks, were suspended in September by the local financial regulator due to their weak financial standing.
Police said Mr Kim was found dead in a hotel room in Seoul early yesterday morning, having apparently cut his wrists and other parts of his body.
The savings-bank industry consists of only about 2 per cent of the nation's financial assets, so the turmoil hasn't threatened South Korea's financial sector.
In November, an executive of Tomato 2 Savings Bank was found hanged.
In September, the head of Jeil 2 Savings Bank jumped to his death the same week financial regulators ordered his bank to close.
South Korea has around 100 savings banks, which generally cater to low- to middle-income workers.
Some of the biggest banks collapsed last year because of heavy exposure to the fragile real-estate market in the wake of the 2008 global financial crisis.
The government has closed several banks and is in the process of selling others.
Allegations that executives made payments to government officials to avoid or delay closures and restructuring prompted investigations by prosecutors.
So far, a few working-level financial watchdog officials have been indicted in the case, according to local media.
Officials at the watchdog, the Financial Supervisory Service, have said they would work to improve supervision of their staff in an effort to regain the public's trust.
While investigators, including police, financial regulators and tax officials continue to probe officials at some of the banks, the restructuring of the sector is reaching a conclusion as the nation's bigger banks step in to take over the savings institutions.
Source: theaustralian
The death of Kim Hak-heon, chairman of Ace Mutual Savings Bank, comes as prosecutors are investigating allegations of illegal lending and bribery in the savings-bank industry.
Mr Kim was due to be questioned by prosecutors yesterday over allegations of illegal lending and accounting fraud, according to police.
Prosecutors didn't return calls seeking comment.
Operations at Ace Mutual Savings Bank, along with six other savings banks, were suspended in September by the local financial regulator due to their weak financial standing.
Police said Mr Kim was found dead in a hotel room in Seoul early yesterday morning, having apparently cut his wrists and other parts of his body.
The savings-bank industry consists of only about 2 per cent of the nation's financial assets, so the turmoil hasn't threatened South Korea's financial sector.
In November, an executive of Tomato 2 Savings Bank was found hanged.
In September, the head of Jeil 2 Savings Bank jumped to his death the same week financial regulators ordered his bank to close.
South Korea has around 100 savings banks, which generally cater to low- to middle-income workers.
Some of the biggest banks collapsed last year because of heavy exposure to the fragile real-estate market in the wake of the 2008 global financial crisis.
The government has closed several banks and is in the process of selling others.
Allegations that executives made payments to government officials to avoid or delay closures and restructuring prompted investigations by prosecutors.
So far, a few working-level financial watchdog officials have been indicted in the case, according to local media.
Officials at the watchdog, the Financial Supervisory Service, have said they would work to improve supervision of their staff in an effort to regain the public's trust.
While investigators, including police, financial regulators and tax officials continue to probe officials at some of the banks, the restructuring of the sector is reaching a conclusion as the nation's bigger banks step in to take over the savings institutions.
Source: theaustralian
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Date: 2012-01-13 10:53 pm (UTC)