An employee of Woori Asset Trust, an affiliate of Woori Financial Group, received 4.62 billion won in cash and valuables from a partner firm, prompting the financial authorities to launch a sanction process. The company reported the employee to prosecutors.
According to the financial authorities on the 19th, an employee identified as J at Woori Asset Trust is suspected of receiving 4.62 billion won in cash and valuables in Aug. 2021 from a contractor at business sites J managed. The financial authorities are proceeding with disciplinary action against J. The financial authorities are said to have decided on dismissal, a heavy penalty.
According to the financial authorities and Woori Asset Trust, J received cash and valuables in Aug. 2021 from two commissioned contractors at the managed land trust business sites in Eunpyeong-gu, Seoul, that J oversaw. In a managed land trust, the trust company becomes the project implementer, but the consignor provides the project financing.
J reportedly set up a corporation under a borrowed name and used a method of receiving part of the project funds from the consignor as payment. Trust business operators are prohibited from receiving property benefits related to their duties from beneficiaries or transaction counterparties.
The Financial Supervisory Service discovered J's violations during an ad hoc inspection of Woori Asset Trust and initiated disciplinary procedures. J reportedly left the company before the Financial Supervisory Service inspection. The Financial Supervisory Service reported J to prosecutors, and an investigation is underway.
Woori Financial Group acquired International Asset Trust in 2019, changed its name to Woori Asset Trust, and brought it into the group at the end of that year. Woori Financial Group explained that because this was an individual deviation that occurred early after Woori Asset Trust joined the group, it was difficult to uncover the wrongdoing.
A Woori Financial Group official said, "We take this issue very seriously, and last year we established 'sales conduct rules' to significantly strengthen the bid review process and the fund execution procedures for service providers," adding, "A powerful system is now in operation that fundamentally blocks such personal deviations."