Securities Commission accepts enforceable undertakings by Kookmin Bank
The Securities Commission has accepted enforceable undertakings from Kookmin Bank and its directors. The undertakings
relate to offers of term investments which had been made without an investment statement in breach of the Securities
Kookmin Bank is a Korean bank with a branch office in New Zealand. This branch office is a New Zealand registered bank.
Kookmin had been offering term investments to the public without investment statements. These term investments are debt
securities under the Securities Act.
Kookmin ceased offering debt securities to the public when it became aware of the breach.
Kookmin has informed investors that the securities were allotted in breach of the Securities Act, and has advised them
of their rights under the law.
“Banks that offer securities to the public need to be fully aware of their obligations under securities law,” Commission
Chairman, Jane Diplock, said.
“Overseas banks with branches in New Zealand must comply with all of the local securities law requirements. The board
must take responsibility for ensuring this.”
Kookmin is the eighth company to have offered enforceable undertakings to the Securities Commission during the 2004
The full text of the undertakings by Kookmin can be viewed on the Commission’s website: www.sec-com.govt.nz