The president of Hana Bank, the fourth-largest lender in South Korea, has been disciplined for illegally providing loans to fund an ailing savings bank several years ago, financial industry sources said Tuesday.

According to the sources, Hana Bank President Kim Jong-jun, then head of Hana Capital Co., allegedly invested 14.5 billion won ($13.7 million) in a savings bank in 2011 using fabricated documents and skipping an approval process by the board of directors. Hana Capital failed to recollect 6 billion won.

Bank executives such as Kim who receive punishment from the Financial Supervisory Service are banned from working at financial institutions for three to five years, effectively forcing them into retirement.

Kim Seung-yu, former chairman of Hana Financial Group Inc., the holding company of Hana Bank, was also reprimanded for making illegal loans and abusing his power to buy some 4,000 pieces of artwork through the banking group. (Yonhap)