• SK FSS fined Mirae Asset Securities, for violating the duty to maintain liquidity ratio and submit business reports, the ban on credit extension to affiliates' executives.

Disciplinary Actions

• Imposed a caution, KRW 696mn penalty surcharge, KRW 578mn fine for negligence against firm; issued reprimand against staff member, caution against staff member.
• Indicated illegal/unfair matters for retirees equivalent to 3-month business suspension and imposed fine for negligence against 1 staff, illegal/unfair matters for retirees equivalent to a reprimand against 2 staff, equivalent to a caution against 1 staff.
• In addition, violations of the ban on credit extension to executives of affiliates, the duty to record the sales process when selling financial investment products, restrictions on transactions of financial investment products by executives/employees.

Notes for Management and Improvements

• Issued six notes for management to require the strengthening of independent operation of independent transaction units re short selling, improvements of business procedures re brokering of repurchase agreements to prevent non-payment risks.
• Required improvements for 13 items, including application and calculation of credit interest rates, procedures for signing non-face-to-face proprietary investment contracts, as well as establishment and implementation of IT emergency measures.