The Financial Supervisory Service said Tuesday that it has issued an “institutional warning” against Korea Exchange Bank for raising interest rates on loans to the corporate sector via “irregular practices.”Its irregular rate hikes were mostly conducted when U.S.-based Lone Star Funds was holding the majority stake in the commercial bank as the biggest shareholder.“Glossing over lending terms, KEB raised the rates on loans to small- and mid-sized enterprises. The hikes ranged between 0.2 percent

Korean listed companies’ ability to pay back their debt has deteriorated due to their worsening profitability amid slowing economic conditions.Based on a 2012 assessment of firms listed on the stock market, Woori Finance Research Institute said Tuesday that 15 percent, or 180 out of 1,200 firms, were found to earn less than the amount they have to pay in debt interest.The 180 firms posted an average interest coverage ratio ― a firm’s operating profit divided by its interest costs ― of less than

AIA생명(구 AIG생명)이 지난 4년간 보험료 28억원어치를 과다 청구한 사실이 금융당국에 적발됐다.계약자가 자동이체를 통해 보험료를 납입하는 경우 “영업보험료의 2%를 할인” 계산해서 영수한다는 자사 규정을 어기고 할인되지 않은 금액을 청구한 혐의다.금융감독원에 따르면 AIA생명은 지난 2007년 7월부터 2011년 10월까지 할인대상 계약 1백만여 건에 대한 보험료를 과다 영수했다.문제가 된 상품은 ‘무배당프라임평생설계보험’ 등 39개이고 초과금액은 28억원에 달했다.금감원 관계자는 “해당 보험사에 대해 ‘기관경고’ 처분을 검토하고 있다”며 “과다 영수한 금액 28억원을 계약자들에게 환급하라”는 조처를 취할 방침이라고 밝혔다.그는 또 “과징금 2억여원 및 과태료 1천만원을 부과하는 방안도 금융위원회에 건의했다”고 말했다.금감원은 기타 문책사항도 적발하고 AIA생명 임원 2명과 직원 12명에 대한 제재도 검토 중이다. 보험설계사 6명은 각 60일부터 최대 180일까지의 업무정지

Financial regulators have decided to slap fines of up to 260 million won ($240,000) on the Korean unit of American International Assurance for business irregularities, industry sources said Monday.The sources said the firm’s irregular business practices included the “overcharge of insurance premiums” worth about 2.8 billion won for more than 1 million cases.AIA Life, or AIA Group Limited Korea and formerly AIG Life, had stipulated that it would offer a 2 percent discount for payment of premiums

Three life insurance firms are suspected of engaging in irregular accounting practices involving promotion expenses for their “bancassurance” business, industry sources said Sunday.The three firms are Hanwha Life (formerly Korea Life), Tongyang Life and Mirae Asset Life, according to sources and the Financial Supervisory Service.An FSS official said that the regulator recently issued sanctions, such as “reprimands” and “cautions,” against 12 executives and employees of the three insurance firms

생명보험회사 3곳의 임원 및 직원 12명이 부당 회계처리 혐의로 최근 금융당국의 제재를 받은 것으로 3일 확인됐다.한화생명, 동양생명, 미래에셋생명 등 3개 회사는 시중은행 창구를 통해 판매하는 보험상품 판촉비용을 회계장부에서 누락한 혐의를 받고 있다.금융감독원 관계자는 이들 생보사가 “골프용품, 주류 등의 판촉물을 법인카드로 구입 후 방카슈랑스 제휴은행 영업점에 제공했다”고 말했다.그는 이어 “관인 영수증 등에 의해 적정하게 회계처리하는 것이 원칙임에도 일체의 증빙서류를 보관하고 있지 않았다”고 밝혔다.동양생명의 경우, 지난 2011년 4월부터 2012년 5월 사이 은행에 총 9억6천여만원 상당의 판촉물을 제공했다. 그러나 이를 회계장부에 기입하지 않은 것으로 금감원은 파악했다.한화생명과 미래에셋생명은 각각 8억4천만원과 1억원의 판촉비를 누락한 것으로 전해졌다.금감원은 동양생명의 미등기 임원 등 6명에 대해 ‘견책’ 또는 ‘주의’ 조처했다. 한화생명과 미래에셋생명도 각 3명씩 제

The securities industry recorded worse-than-expected earnings during the October-December 2012 period amid a sharp drop in stock brokerage fees collected in the ongoing economic slowdown.Further, some major brokerage firms saw their performance fall into “deficit,” industry and Financial Supervisory Service data showed Thursday. Among them are Hyundai Securities, Daishin Securities and IBK Investment & Securities.Hyundai Securities, a subsidiary of Hyundai Group, is noted as one of the nation’s

The nonlife insurance industry said Wednesday that it has launched a project to induce a cut in repair costs for import cars.Dealers of import cars have long been under criticism for not publicizing prices of auto components. As a result, consumers and insurance firms had to bear quite high expenses for car repair.Since early January, the General Insurance Association of Korea ― in coordination with automobile (or nonlife) insurance firms ― has been looking into the optimum level of auto parts a

Local chaebol and financial groups are engaging in another round of heated competition in the saturated credit card market.The excessive rivalry between the conglomerates and the banking groups over the money-spinning business stemmed from a credit card fiasco about 10 years ago.The 2003 woes from the reckless doling-out of credit cards led to a record-high number of credit defaulters and the downfall of then-No. 1 issuer LG Card.The latest competition looms large between the card units of Samsu

The controversial policy direction toward achieving a fairer market has come under the spotlight again, as President Park Geun-hye referenced “economic democratization” during her inaugural speech Monday.The term of economic democratization, aimed at weeding out unfair practices of big enterprises, was not included in the list of five major policy goals unveiled by the Park government last week.While opposition parties and civic groups criticized Park for omitting her campaign pledge from the li

The Financial Services Commission said Friday that it has endorsed the establishment of JB Financial Group, which will be headquartered in North Jeolla Province.The financial group will act as the parent unit of Jeonju City-based Jeonbuk Bank. Jeonbuk Bank had said it was considering a transformation into a financial holding company in a bid to boost its competitiveness through more integrated business of affiliates.The provincial bank also said it was reviewing the shift for the long haul in a

The Financial Supervisory Service is considering taking punitive measures against Ergo Daum Direct, an online auto insurance firm, for fabricating the ratio of insurance payouts to premiums ― also called loss ratio.Though FSS officials said they have yet to decide on the sanction level, there is a high possibility that the insurance firm will be issued an institutional “warning” or “caution” by the regulator.But the punishment is not expected to deal a heavy blow to the insurance firm’s business