Toss Bank has received an institutional warning and a fine of over 240 million won following its first regular inspection by the Financial Supervisory Service (FSS).
On September 4, the FSS announced the results of the inspection conducted from November 4 to December 6, 2024. The sanctions were imposed on August 25.
The FSS identified legal violations due to inadequate internal controls at Toss Bank, resulting in an institutional warning and a fine of 245.2 million won.
Three executives received a 'warning,' while two others faced sanctions for 'violations and unfair practices related to former employees.' Additionally, one employee was subject to a salary reduction, another was sanctioned for violations related to a former employee, and four cases were flagged for self-management.
Key violations identified by the FSS included: failure to notify customers of financial transaction information, failure to initiate procedures for the expiration of claims on fraudulently used accounts, violations of reporting obligations when establishing or changing financial transaction-related terms, delays in building a customer inquiry system for credit information use and provision, violations of disclosure obligations regarding credit extensions to major shareholders, failure to protect customer service staff, violations of electronic financial transaction safety measures, and failure to notify customers of corrections to electronic financial transaction errors.
Furthermore, the FSS has advised Toss Bank to strengthen its capital ratio management system, enhance its credit evaluation system for low- to mid-credit borrowers, and expand loan supply, among 22 management recommendations. It also suggested improvements to performance evaluation systems and the strengthening of board capabilities, totaling 35 recommendations.
In addition to the sanctions disclosed, further announcements regarding ongoing separate matters will be made in the future.
* This article has been translated by AI.
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