FSS conducts regular audit on Shinhan Financial

The Financial Supervisory Service is carrying out a regular inspection on Shinhan Financial Group and its flagship Shinhan Bank, but said that it will not look into the group’s alleged connection with the disputed Keangnam Enterprises.

The regulator started a three-week inspection on the nation’s largest banking group this week, to revise its management situation and financial soundness, according to officials.

It is the first comprehensive audit since governor Zhin Woong-seob took office in November last year.

The FSS, however, will only focus on the banking group’s financial affairs and keep away from its alleged connection with Keangnam Enterprises.

Shinhan Financial is the main creditor bank to the disputed company, whose former chairman Sung Woan-jong committed suicide last week, amid ongoing prosecutorial probe over the company’s involvement in failed energy projects.

“The audit is a regular event which takes place once in every two or three years, and has nothing to do with the Keangnam case,” said an official of the FSS.

(tellme@heraldcorp.com)