U.S. investigative authorities are reportedly expanding their investigation into JPMorgan’s alleged practice of hiring the children of high-level Chinese officials in return for business favors to similar activities in Korea, Singapore and India.
South Korean financial authorities said Sunday that they had yet to receive any request for cooperation in the probe.
The New York Times reported Saturday that the three countries were the focus of the probe, led by the U.S. Department of Justice and the Securities and Exchange Commission.
The U.S. authorities have been investigating whether the investment bank violated the U.S. bribery law by recruiting the children and relatives of politicians and clients to win large business deals, according to the report.
The Korean operations of JPMorgan and its subsidiaries were unavailable for immediate comment.
Korean authorities are watching the development of the U.S. investigation.
“We have not received any requests of cooperation regarding that matter,” said Oh Hong-suk, the head of international cooperation office of the Financial Supervisory Service.
The alleged hiring-for-favors scandal began when U.S. federal authorities led by the SEC anti-bribery unit launched an investigation into the financial giant’s hiring program in August.
Included in the list of officials’ relatives were the daughter of a Chinese railway official and the son of Tang Shuangning, the former Chinese banking regulator and present chairman of China Everbright Group, a state-controlled financial conglomerate.
JPMorgan launched its business in Korea in 1967 as a provider of investment banking and asset management services.
By Chung Joo-won (
joowonc@heraldcorp.com)
