Korean Regulator Criticised for Failing to Probe Banks

South Korea’s financial watchdog came under increased scrutiny over its monitoring of savings banks after Prime Minister Kim Hwang Sik said it resisted probes by the state auditor into the lenders last year.

The Financial Supervisory Service tried to dissuade the Board of Audit and Inspection from examining savings banks between January and April 2010 for suspicion of improper lending, Kim told lawmakers today in Seoul. Kim was chairman of the state auditor at the time, prior to taking his current post in October.