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As the prosecution investigates allegations of improper loans to relatives of former Woori Financial Group Chairman Son Tae-seung, they conducted a raid on Woori Bank's headquarters and other offices. On August 27, prosecutors were seen at Woori Bank's headquarters in Jung-gu, Seoul. (Source: Yonhap News) |
[Alpha Biz= Reporter Kim Sangjin] The Financial Supervisory Service (FSS) found that improper loans amounting to 1.4 billion KRW related to former Woori Financial Group Chairman Son Tae-seung's relatives were issued by Woori Financial Savings Bank and Woori Financial Capital, subsidiaries of Woori Financial Group.
On the 7th, the FSS confirmed that these inappropriate loans were issued by Woori Financial Savings Bank and Woori Financial Capital, totaling 1.4 billion KRW, and notified the relevant borrowers and associated individuals to the authorities.
The FSS has demanded strict internal disciplinary action against related employees at the savings bank and capital firm. However, as the loan amounts were relatively small, each being 700 million KRW, no regulatory action against the institutions was included.
Earlier, in August, the FSS confirmed during its inspection of Woori Bank that the bank had been aware of the improper loans and loan deterioration related to Son from September to December of the previous year, prior to the bank's internal audit in January.
The FSS noted that Woori Bank's failure to take immediate action upon recognizing the issue led to additional loans being executed by the savings bank and the extension of existing loans from the capital company.
Woori Financial Savings Bank extended a 700 million KRW credit loan to a corporation represented by Son's brother-in-law at the end of January this year, dismissing negative opinions from an employee who was not from Woori Bank.
Woori Financial Capital approved a 700 million KRW real estate-secured loan to a corporation represented by Son's father-in-law in October 2022, and despite a decline in collateral value last October, they extended the loan's maturity. Investigations revealed that some of the loan amounts were used for personal purposes by the borrowers.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
