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SEC: S. Korean State-run Bank Execs Involved in Illicit Hiring Scandal

Written: 2019-11-11 12:13:04Updated: 2019-11-11 14:04:56

SEC: S. Korean State-run Bank Execs Involved in Illicit Hiring Scandal

Photo : KBS News

A U.S. government report says executives at two South Korean state-run entities influenced illicit hiring at a global financial services firm during the 2009 global financial crisis. 

According to the report released by the U.S. Securities and Exchange Commission(SEC) in September, executives from South Korea's state-run bank and a state-owned business requested Barclays hire their children and acquaintances in return for selecting the investment bank as lead manager of a foreign exchange bond issuance.

Based on the report, KBS found that Barclays hired the child of an executive at the Export-Import Bank of Korea and an acquaintance of another executive as an intern in 2009. 

The U.K. firm was selected as the lead manager of the bank's one-point-five billion dollar foreign exchange bond issuance, receiving one-point-15 million dollars as a commission. 

According to the SEC report, the investment bank also hired a son of a key decision-maker at a South Korean state-run company as an intern in 2009 and received a 970-thousand dollar commission for the company's one-billion dollar foreign exchange bond issuance.

Barclays was fined six-point-three million dollars by the SEC in September for improprieties, including illegal hiring in South Korea.

South Korea's Financial Supervisory Service said its U.S. counterpart, however, has not directly informed it of its findings.

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