StanChart Korea finds itself in hot water

Three state regulators took turns putting the squeeze on Standard Chartered Bank Korea.

On Friday, the Financial Services Commission finalized a fine of 17 million won ($16,000) on the bank for offering and signing up to 566 unauthorized loan agreements with small and medium companies.

According to the watchdog, the agreements signed by SC Bank were “unfair,” and were “typical tricks from foreign banks aimed at snatching the umbrella away from companies on rainy days.”

The contracts lack binding terms for the banks, meaning they can collect the loans at any unspecified time, reduce the amount of the loans or cancel altogether.

The loans amounted to some 8.4 trillion won ($7.7 billion).

Afterwards, the National Tax Service launched a tax investigation into the bank in its first regular probe by the tax authorities since April 2009.

The British bank was also grilled by the Financial Supervisory Service for high, untaxed dividends.

https://nwww.koreaherald.com/view.php?ud=20130224000188