Shinhan Bank Asks Prosecutors to Investigate Parent Company President Shin

Shinhan Bank asked South Korean prosecutors to investigate Shin Sang Hoon, the president of parent company Shinhan Financial Group Co., for alleged embezzlement.

Prosecutors are being asked to investigate Shin and six other officials at Shinhan Bank for alleged breach of duty and embezzlement, Shinhan Bank said in an e-mailed statement today.

Directors of Shinhan Financial Group, South Korea’s largest financial company by market value, will hold a meeting to decide whether to fire Shin, according to the release. The statement didn’t give a timeframe for the board meeting. A phone call by Bloomberg News to Shin’s office was answered by his secretary, who said the executive was unavailable to comment.

Shares of Shinhan Financial dropped 3.1 percent at 1:36 p.m. in Seoul trading, the biggest decline since June 7.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net. Bomi Lim at blim30@bloomberg.net

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