Sep. 23, 2009 (The Korea Times) -- The head of KB Financial Group (NYSE:KB) , South Korea's top financial holding firm, offered Wednesday to resign two weeks after the financial regulator punished him for inflicting investment losses on a state-owned bank.

On Sept. 9, the Financial Services Commission (FSC) decided to suspend Hwang Young-key from exercising his duties for three months, a move that has become controversial, according to Yonhap News Agency.

Hwang was responsible for Woori Bank's 1.62 trillion won ($1.35 billion) worth of losses from investments in derivative products from 2005-2007 when he headed the bank and its parent, Woori Finance Holdings Co.

"Although legally I can retain my position as president of KB Financial, I have decided to step down in order not to burden the group with my problems," Hwang was quoted as saying in a statement.

"I feel grave responsibility for the investment losses of Woori Bank... But it is regrettable that my argument was not accepted." He had earlier denied accusations by the regulator that he was personally responsible for the investment losses, saying that they resulted from the U.S.-sparked global financial meltdown.

Hwang was named CEO of KB Financial in September last year, when the holding company was established.