4 brokerages to be reprimanded for receiving illegal rebates
SEOUL, April 21 (Yonhap) -- South Korea's financial regulator said Friday it has decided to reprimand four brokerage houses for receiving illegal rebates from the nation's only securities-financing services company.
The four brokerages were allegedly accused of receiving a total of more than 10 billion won (US$8.8 million) in illegal rebates from the Korea Securities Finance Corp. in return for depositing their customers' money at the securities-financing services firm, according to officials at the Financial Supervisory Service.
Mirae Asset Daewoo Co. will receive a relatively heavier penalty of an "institutional warning" because its employees received a large portion of the illegal rebates.
NH Investment & Securities Co. and Yuanta Securities Korea Co. will be slapped with a relatively lighter penalty of an institutional caution.
The three brokerages and Korea Investment & Securities Co. will also be fined, the FSS said.
Seven executives and seven officials from the four brokerages will also receive a caution, the FSS said.