31% of individuals appointed to workout firms unfit

Of the 99 individuals from creditor banks who were appointed by the government to various companies under workout programs as outside board members or inspectors, 31 were found to have previous records of being reprimanded by the Financial Supervisory Board for neglect of duty or lack of integrity during investigations in the wake of the economic crisis.

A National Assembly member of the State Affairs Committee, Rep. Ahn Dae-Ryun of the United Liberal Democrats, revealed on Sunday after an inspection of audit reports that of the 66 individuals from the creditor banks appointed as outside trustees for the workout companies, 19 had records of reprimands. Also, of the 24 inspectors, 10 had such records, and 2 of the nine presidents and executive members received disciplinary action.

By creditor banks, 7 individuals were from Hanvit Bank, 6 from Cho Hung Bank, 4 each from Seoul Bank, Industrial Bank of Korea, and Korea Exchange Bank, 2 each from Korea First Bank and Pusan Bank and 1 each from Peace and KorAm banks.

In addition to the question of the soundness of these appointments under government influence, it was unthinkable that individuals with proven records of misconduct were appointed to weed out the same. Ahn called for greater scrutiny by the Financial Supervisory Service and greater accountability for creditor banks.

Lee Chol-Hi klimt@donga.com