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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] The Financial Supervisory Service (FSS) has uncovered 2.334 trillion won in improper loans at Woori Bank, prompting criticism of the bank's current management, including Woori Financial Group Chairman Im Jong-ryong.
Following the scandal involving improper loans linked to former Woori Financial Group Chairman Son Tae-seung's relatives last year, the FSS expedited its regular inspection schedule to conduct a high-intensity investigation. During this process, FSS Governor Lee Bok-hyun held a press briefing on April 4, revealing that the FSS had uncovered an additional 38 billion won in improper loans related to Son's family—bringing the total amount to 730 billion won.
Notably, over half (451 billion won) of the improper loans occurred after Chairman Im Jong-ryong took office. Governor Lee emphasized that all individuals responsible for not exercising control—including Son Tae-seung—should be held accountable.
In the press briefing, which focused on the 2024 results of major inspections on holding companies and banks, the FSS dedicated more than half of the 21-page release to issues at Woori Financial Group. The FSS criticized Woori Financial for neglecting financial stability and risk management and reprimanded the current management for inefficiency.
Particularly, the FSS pointed out procedural flaws in Woori Financial's approval process for the acquisition of Dongyang Life Insurance and ABL Life Insurance, where the Risk Management Committee and Board of Directors meetings were held only 20 minutes apart, leading to no reflection of the committee's review in the board's decisions.
Furthermore, the FSS highlighted that a clause stipulating the forfeiture of 1.55 trillion won (about 10% of the acquisition price) in the event of regulatory non-approval was included in the agreement, yet this crucial issue was never discussed in the official board meeting.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
