A major loan scandal involving hundreds of millions of won has occurred again at the Industrial Bank of Korea. It has been revealed that a branch manager and 5 to 6 Heads of Team colluded with corporations to lend money, profiting from interest and dividends.
According to the financial sector on the 23rd, the Industrial Bank of Korea's Southern Central Headquarters, located in Anyang, Gyeonggi Province, put the individuals involved in the improper loans on standby as of the 19th. The Industrial Bank of Korea is currently conducting an internal audit.
A branch manager of a branch under the Southern Central Headquarters is reported to have gathered Head of Team level employees to plot the improper loans. Some of these employees allegedly took out loans in their family's name to lend money to corporations, receiving interest and dividends in return.
The Industrial Bank of Korea reported details of this financial incident to the Financial Supervisory Service (FSS). According to banking supervision regulations, financial incidents involving amounts exceeding 1 billion won must be reported to the FSS and disclosed. An FSS official noted, "A report of the financial incident has been received, and additional on-site inspections will be considered once the bank's measures and investigation results are available."
Last year, a former employee of the Industrial Bank of Korea was found to have caused an improper loan scandal amounting to 88.2 billion won in collusion with a current employee, his wife, and colleagues who joined the bank at the same time. Current and former employees of the Industrial Bank of Korea facing allegations of improper loans were arrested on the 12th.
To strengthen internal controls, the Industrial Bank of Korea plans to implement a reform plan that involves establishing a relatives database, utilizing external reporting channels for insider reports, and is set to begin this month.