Financial watchdog to audit Shinhan for irregularities

SEOUL (The Korea Herald/ANN) – South Korea’s financial watchdog said yesterday it will start a comprehensive audit of Shinhan Financial Group and its commercial banking unit this month.

According to a Shinhan Bank spokesperson, the Financial Supervisory Service sent a request last month for documents, ahead of a change in management next year.

“We have received a request for a comprehensive inspection from the FSS slated around the end of the month,” the spokesperson told The Korea Herald, without elaborating.

The FSS’ audit is its second comprehensive inspection this year of a major financial holding firm.

In April, it targetted KB Financial Group and its lending unit, KB Kookmin Bank, for a similar inspection.

News reports, citing financial authorities, said the FSS would look into the governance structure of Shinhan Group since the term of its current Chairman Cho Yong-byoung is slated to end in March next year.