Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Korea Investment & Securities CEO called to appear at Assembly audit next week
Korea Investment & Securities CEO Jung Il-mun speaks during the KGIC 2023 event at Conrad Seoul Hotel in Yeouido, Seoul, Aug. 22. Courtesy of Korea Investment & Securities
By Anna J. Park
Suspicions of unfair trade practices and technology theft surround brokerage firm
Korea Investment & Securities CEO Jung Il-mun is slated to attend an audit at the National Assembly as a witness next week. Jung is expected to be grilled during his appearance at the audit session, as his firm is embroiled in allegations of unfair trade practices and technology theft against a startup company.
According to the National Assembly, Wednesday, its National Policy Committee, which supervises financial authorities, has decided to call Jung as a witness to its audit session scheduled for Oct. 27. Jung is one of 12 witnesses called to appear at the audit over the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS).
Initially, Kim Nam-goo, chairman of Korea Investment Holdings, which is the parent company of Korea Investment, was listed as a witness until earlier in the day. But he was replaced with Jung, after consultations by the committee members representing the ruling and opposition parties.
Jung will be the third CEO of a securities company to be called as a witness during this year's National Assembly audit session. Previously, Hi Investment & Securities CEO Hong Won-sik and Meritz Securities CEO Choi Hee-moon attended the audit sessions on Oct. 11 and 17, respectively, each being grilled by lawmakers over various controversies surrounding their firms' unfair trade practice.
Korea Investment is also enmeshed in a controversy over unfair trade and technology theft. In June this year, Seoul-based fintech company Indexmine filed a complaint against Korea Investment to the Fair Trade Commission (FTC) on charges of unfair trade practices stipulated under the country's Fair Trade Act.
The startup company argued that it did not receive fair compensation for it services provided for two years and nine months to Korea Investment. Indexmine said it signed a business partnership and consignment contract with Korea Investment from April 2020 to December 2022 and performed its duties for the brokerage firm.
But Indexmine ended up working without any remuneration for two years and three months, and received only 18 million won ($13,334) during the remaining six months.
The fintech firm also raised suspicions of technology theft on the part of Korea Investment. It accused Korea Investment of independently developing the service provided by Indexmine and installing it on its mobile platform, coinciding with the time when Korea Investment notified the fintech firm of the termination of the business consignment contract.