The chief of South Korea's financial watchdog on Thursday overturned an earlier decision by a disciplinary panel and imposed a heavier punishment on the heads of KB Financial Group Inc. and its flagship Kookmin Bank, the first time that the watchdog has rejected the panel's decision.
Gov. Choi Soo-hyun of the Financial Supervisory Service (FSS) said the watchdog will stiffen the penalties on KB Financial Chairman Lim Young-rok and Kookmin Bank President Lee Kun-ho to the level of "censure," the third-highest among five penalties that it can mete out to officials of financial institutions. The three highest levels of punishments are considered to be heavy.