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Photo credit: IBK Industrial Bank of Korea |
[Alpha Biz= Paul Lee] An employee of IBK Industrial Bank of Korea (IBK) has been referred to prosecutors for allegedly issuing unauthorized loans totaling KRW 5 billion (approximately USD 3.6 million) under family-owned corporations.
According to financial industry sources on July 3, the Seongdong Police Station in Seoul referred IBK employee “A” to the prosecution in early May without detention, on charges of breach of trust. “A,” who worked at one of IBK’s Seoul branches, is suspected of issuing the loans over a three-month period starting early last year, using companies registered under family members for real estate investment purposes.
Investigations revealed that “A” exploited their role in corporate loan processing to facilitate the scheme. The fraudulent activities were uncovered through an internal audit by the bank.
An IBK official stated, “The misconduct was identified during our internal audit last year. The employee has since been dismissed following disciplinary procedures,” adding that “the full amount of the loan has been recovered.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
