The South Korea Financial Services Commission revoked Shilla Asset Management’s authorization and registration for collective investment businesses and Zenith Investment Advisory’s registrations for investment advisory and discretionary investment management. The action followed a Financial Supervisory Service inspection that identified multiple violations, including failure to conduct authorized or registered business, breaches of minimum capital requirements and accounting standard violations. The inspection followed complaints that the firms had promised high returns through initial public offering subscription services but failed to return investment principal and proceeds recorded in balance certificates. Shilla Asset Management received a KRW 1.494 billion administrative fine for false business report disclosures and failures to disclose or report material management information, as well as a KRW 20 million penalty for breaching restrictions on credit extensions to major shareholders. Zenith Investment Advisory received a KRW 1.28 billion administrative fine for false business report disclosures. The commission also imposed dismissal related sanctions concerning former Shilla executives and current and former Zenith executives for capital, accounting and disclosure violations.
2026-09-23South Korea Financial Services Commission
South Korea Financial Services Commission revokes Shilla Asset Management and Zenith Investment Advisory authorizations and imposes KRW 2.794 billion in fines
The South Korea Financial Services Commission revoked Shilla Asset Management’s collective investment authorizations and Zenith Investment Advisory’s advisory and discretionary management registrations after inspections found capital, accounting and disclosure violations. The firms received combined fines and penalties of KRW 2.794 billion, alongside dismissal related sanctions concerning current or former executives.