[Exclusive] Sh Suhyup Bank Weighs Lawsuit Challenging FIU’s 1 Billion Won Fine; Could It Derail Lee Hyeong-ju’s Bid to Become Bank President?

[Financial News] Sh Suhyup Bank is considering filing a lawsuit to challenge a fine personally approved by Lee Hyeong-ju, head of the Financial Intelligence Unit (FIU), who is seeking to become the next president of Suhyup Bank, it has been confirmed. A major law firm’s legal review has also found that if a lawsuit proceeds, a serious internal-control gap could arise, with Lee excluded from related duties even if he takes office as bank president. The findings are expected to spark controversy.
According to a legal opinion from a major law firm, obtained on the 18th through the office of Song Eon-seok, a People Power Party lawmaker on the National Assembly’s Political Affairs Committee, Lee would likely be unable to handle work related to a lawsuit seeking a refund of the fine imposed by the FIU last March if he is appointed president of Suhyup Bank, for which the selection process is currently underway.
Earlier, Lee, as head of the FIU, personally approved the 1 billion won fine imposed on Suhyup Bank last March for violating customer verification requirements. The stated grounds for the penalty were that the bank failed to properly verify addresses when opening accounts for 86 customers between April 21 and May 8, 2021.
Suhyup Bank is considering filing a lawsuit to challenge the fine. Another financial institution is currently pursuing a similar lawsuit, and a decision is expected soon. The bank plans to wait for that outcome before deciding whether to sue.
Legal experts say that if Suhyup Bank actually challenges the fine and initiates legal proceedings, Lee would have difficulty getting involved as bank president because the matter concerns a sanction he personally handled. A major law firm’s opinion obtained through Song’s office states that Lee would not only have difficulty obtaining approval to take up the post of Suhyup Bank president, but would also face restrictions on handling work related to a lawsuit seeking a refund of the 1 billion won fine and on overseeing internal controls, a key duty of the bank president. It therefore concludes that approval for him to handle such work is unlikely.
Under Article 18-2 of the Public Service Ethics Act, retired public officials may not handle specific matters, including supervision and sanctions, that they directly dealt with while in office. For people subject to employment screening under the agency-work criteria, related matters handled by their former agency for their prospective employer during the two years before retirement are also off-limits for two years after retirement. Separate approval may be granted, however, if the public interest and the fairness of handling the matter are recognized as sufficient grounds.
Over the past five years, the FIU has taken a total of eight administrative actions related to Suhyup Bank. Lee was involved in the decisions on three of them, including the fine imposed last March. In May 2024, the FIU imposed a fine of 1.5216 billion won for the “sale of derivatives and trust products by unqualified persons,” and in September 2025 it imposed a 60 million won fine following an ad hoc inspection. At the time, Lee was a standing commissioner of the Financial Services Commission (FSC) and took part in decisions on inspections and sanctions.
Rep. Song said, “Even if Lee passes the employment screening to become president of Suhyup Bank, he will face significant constraints in carrying out key management duties unless he receives separate approval to handle the relevant work. In particular, if Suhyup Bank files a lawsuit challenging the 1 billion won fine he personally approved, he may be legally barred even from involvement in that matter.” He added, “If the bank president cannot properly address even major management issues, Suhyup Bank, its cooperative members and its customers will bear the full brunt of the consequences.”
This newspaper tried several times to reach Lee that day for comment, but he did not respond.
[email protected] Seo Ji-yoon Reporter