The Financial Services Commission (FSC) ordered the closure of a branch office of the Korea Exchange Bank for three months for embezzlement.
The penalty will be effective from Feb. 1 2011 to April 30 as the nation’s financial regulator is giving a one-month grace period to minimize damage to customers.
In August, a former manager of the branch, identified by his last name Jeong, was found to have embezzled 68 billion won ($59.43 million).
According to police, Jeong secretly lent money from the accounts of 12 VIP customers to listed companies on the KOSDAQ and KOSPI from July 2006 to early 2010.
Earlier this month, the Financial Supervisory Service (FSS) held a disciplinary committee hearing and dismissed the former manager, while handing down punitive actions including suspensions, pay cuts and warnings to 27 people who knew of the violation.
KEB CEO Larry Klane was given a warning without disciplinary action.