(LEAD) Four former and current senior KDB officials to return their bonuses

(ATTN: UPDATES with similar move by Export-Import Bank of Korea)

SEOUL, July 2 (Yonhap) -- South Korean policy lender Korea Development Bank said Saturday four of its former and current senior officials have decided to return their performance-based bonuses from last year.

The move came amid mounting criticism toward the policy lender over a series of crises involving financially troubled shipbuilders and two major shipping lines.

The policy lender pays a performance-based bonus to its executives based on the results of an assessment that is released every June.

Executives are rated one of several categories, with S being the top rating, followed by A, B, C and D.

An executive who receives an S rating is paid 110 percent of his or her base pay as a bonus. A rating and B rating means executives can receive 100 percent and 50 percent of base pay, respectively. Those who get a D rating receive no performance-based bonus.

The four former and current officials, who decided to return last year's bonuses are Hong Kyttack, former head of KDB; vice chairman Ryu Heui-kyoung; auditor Shin Hyung-chul; and senior executive director Lee Dai-hyun.

Last month, the policy lender outlined a set of self-reform measures amid criticism over its lack of expertise in restructuring and supervising companies under its control.

KDB is the main creditor bank of three major shipbuilders placed under court receivership -- Daewoo Shipbuilding & Marine Engineering Co., Samsung Heavy Industries Co. and STX Offshore & Shipbuilding Co. It is also the main creditor of the country's two major shipping lines -- Hanjin Shipping Co. and Hyundai Merchant Marine Co.

Currently, KDB carries a debt exposure worth 4.5 trillion won to Daewoo Shipbuilding alone. The bank didn't provide how much credit it extended to the shipping and shipbuilding sectors in total.

Also Saturday, the Export-Import Bank of Korea, another policy lender, said its Chairman Lee Duk-hoon and four other senior officials have decided to return their performance-based bonuses from last year.

The four other officials are Deputy President Hong Young-pyo; auditor Kong Myung-jai; Senior Executive Director Choi Sung-hwan; and Senior Executive Director Kim Sung-taek.

Last month, Eximbank released its self-reform plan focusing on preemptive risk management and lowering the ratio of non-performing loans to total loans to less than 2 percent by 2020 from 3.35 percent at the end of March.

It extended loans worth 17.6 trillion won to the shipping and shipbuilding sectors as of end-2015.

entropy@yna.co.kr
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