By Kim Yoo-chul
The country's financial regulator said Tuesday that it has begun an investigation into alleged hiring irregularities at Shinhan Bank.
“Regarding the issue over hiring irregularities at Shinhan, the Financial Supervisory Service (FSS) has started investigating the case,” FSS Governor Kim Ki-sik told reporters.
Reports said about 20 sons and daughters of executives at Shinhan Financial Group, which has Shinhan Card and Shinhan Bank under its wing, received “extra favors and credits” when being hired by group affiliates.
“The FSS didn't find any hiring irregularities at Shinhan Financial Group and its affiliates in last year's inspection; however, the regulator recently received requests for a new investigation into such allegations,” an FSS spokesman said.
Shinhan Bank, Shinhan Card and Shinhan Capital are the initial targets of the probe. The FSS has notified the three affiliates about this.
“In detail, the FSS will probe Shinhan Bank for seven business days with the regulator looking into the allegations at Shinhan Card and Shinhan Capital for five business days from April 12,” the FSS official said.
The government agency plans to team up with local prosecutors for further inquiries, if necessary.
Shinhan Financial Group has denied the allegations that executives at the group's main affiliates were involved in hiring irregularities.
“Simply, the allegations are groundless as it doesn't make any sense to pick sons and daughters of group executives and to give them extra favors and credits. The number of executives working at the group and group affiliates was over 300 as of March this year,” the group said.
Months ago, Choe Heung-sik, a former FSS governor, stepped down from the position after allegations about his involvement in hiring irregularities when he was head of a major commercial bank.
Since last year, major banks here have come under fire for allegedly favoring applicants with ties to bank executives or top-tier customers in their hiring processes.
The FSS said it is “still investigating” similar cases at KB Kookmin, KEB-Hana Bank and Woori Bank.