South Korea's Financial Services Commission said it supports a March 14 decision by the Seoul Administrative Court dismissing KEB Hana Bank's request for the repeal of sanctions imposed over the lender's role in the sale of problematic derivative-linked funds.

The court found Ham Young-joo, who stepped down as CEO of the bank in 2019, was responsible for the sale of financial products that led to huge investor losses that year, Yonhap News Agency reported.

In March 2020, the commission issued a set of sanctions, including a six-month ban on the sale of privately placed funds by KEB Hana Bank and a "warning" to Ham.

Ham, currently vice chairman of Hana Financial Group Inc., has been nominated as group CEO and chairman of the company. His appointment is set to become final with shareholder approval March 25.

In a March 14 letter to shareholders, Hana Financial Group said it would appeal the court's decision and noted that Ham is still eligible to serve as group chairman.

On March 11, the Seoul Western District Court acquitted Ham on all charges of influence-peddling on KEB Hana Bank's hiring practices in 2015 while president at the bank.