The labor union at Mirae Asset Securities (006800.KS) has pushed back strongly against an intensive inspection by the Financial Supervisory Service into improper sales practices at the brokerage's regional branches, saying the unusually prolonged probe is infringing on employees' rights.
The union said in a statement on Sept. 16 that it "expresses grave concern over the FSS's prolonged and intensive investigation and its excessive investigative methods." The FSS, following an inspection in June, is again examining this month whether violations occurred during the SpaceX public offering — which drew controversy over zero-share allocations — including whether the brokerage improperly encouraged clients to register as professional investors.
The union said employees have been unable to carry out their normal duties because of the repeated inspections. "The FSS conducted an intensive audit for about 40 days from June 5 to July 16, disrupting normal operations to the point that a planned office move from Yeouido to Center One was delayed," the union said. "With an additional investigation running from the 14th of this month through Oct. 8 on the 16th floor of Center One's East Building, about 150 employees from branches nationwide have been summoned to Seoul, forcing them to cancel appointments with clients and leave their sales posts empty."
The union voiced particular concern that the FSS has requested materials that could fall within the realm of privacy and personal information, including records of employees' personal mobile phone calls. "The union will conduct a legal review of the entire investigation, including the excessive summoning of employees and demands for personal information," it said. "If we confirm grounds for violations of basic rights or privacy, we will pursue all legal and institutional measures, including a petition to the National Human Rights Commission and raising the issue with relevant bodies such as the Financial Services Commission, the Board of Audit and Inspection and the National Assembly's National Policy Committee."
The union added: "We respect legitimate supervision, but supervisory authority cannot stand above employees' basic rights, and employees must not be forced to sacrifice in the name of supervision." It said the FSS "has an obligation to ease the burden of inspections and to ensure that the rights of financial institutions and their employees are not unjustly infringed."
