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Industrial Bank of Korea (photo=IBK Industrial Bank of Korea) |
[Alpha Biz= Paul Lee] Employees of Industrial Bank of Korea (IBK) are under investigation for allegedly deleting evidence during an ongoing Financial Supervisory Service (FSS) inspection related to the 240 billion won improper loan case.
According to reports, FSS completed its on-site inspection and is now focusing on legal reviews regarding the involvement of bank staff in the improper loans. IBK had previously announced, in January, that a 239.5 billion won embezzlement incident occurred within the bank.
The improper loans were reportedly issued by employees from IBK's headquarters and various branches in Gangdong, Seoul, to a retired employee involved in real estate development, using inflated property valuations as collateral. All staff involved have been put on suspension.
FSS suspects that there may have been an internal culture of favoritism within the bank, leading to preferential treatment for former and current employees in the granting of improper loans. There are also signs of systematic cover-ups: bank staff are alleged to have deleted key documents related to the loans from their computers during FSS's investigation.
Given the circumstances, the FSS is considering whether the total value of the improper loans could exceed the disclosed 240 billion won figure. Concerns have been raised that the issue may involve higher-level employees or even former management of IBK, similar to previous cases of improper loans at other major banks, such as Woori, KB, and Nonghyup.
As evidence destruction and the possible scale of the improper loans emerge, strong disciplinary actions against IBK and its employees are expected.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
