The prosecution is conducting a search and seizure at the headquarters of the Industrial Bank of Korea related to the '88.2 billion won illegal loan case.' The Financial Supervisory Service referred this case to the prosecution for investigation.
The anti-corruption investigation division 1 of the Seoul Central District Prosecutor's Office (Director General Lee Jun-dong) said it began a search and seizure early in the morning on the 1st related to illegal loan allegations at the headquarters of the Industrial Bank of Korea and certain regional centers and branches located in Seoul, as well as the residences of loan officers.
The Industrial Bank of Korea disclosed that it experienced a financial incident amounting to 23.95 billion won due to business misappropriation last January. Following an on-site inspection by the Financial Supervisory Service, it was found that former and current employees, their spouses, relatives, people who entered the bank at the same time, and business partners were linked to a total of 58 cases of illegal loans amounting to 88.2 billion won, related to land purchases, construction costs, and unsold commercial properties.
The Financial Supervisory Service found that a retiree from the Industrial Bank of Korea, referred to as A, was operating real estate brokerage firms and law offices under borrowed names and obtained illegal loans totaling 78.5 billion won over seven years starting in 2017. It also uncovered that A's spouse and a branch manager at the Industrial Bank of Korea approved A to receive a loan of 6.4 billion won for land purchase using false documentation.
Additionally, the Financial Supervisory Service noted that eight individuals related to the Industrial Bank of Korea's illegal loans received 1.57 billion won in bribes through means such as spouses being employed at companies actually owned by A. It also identified that a total of 23 people, including 10 employees related to the illegal loans, received golf entertainment in South Korea and the Philippines.
In connection with these allegations, the prosecution, which received the investigation referral from the Financial Supervisory Service, conducted searches of about 20 loan officers and related businesses located in Seoul and Incheon on the 17th of last month and has been continuing the summoning investigations of the individuals involved.