In another blow to the local financial sector that is still reeling from a series of scandals including data breaches, the president of Hana Bank was disciplined for illegally providing loans, financial sources said on Tuesday.
Kim Jong-jun allegedly invested 14.5 billion won ($13.7 million) in a savings bank in 2011 using fabricated documents and skipping an approval process by the board of directors.
Kim was at the time head of Hana Capital.
Hana Capital failed to recollect 6 billion won of the amount.
Bank executives such as Kim who receive punishment from the Financial Supervisory Service are banned from working at financial institutions for three to five years, effectively forcing them into retirement.