IBK Bank Employee's 7.6 Billion Won 'Self' Loan for Real Estate Shopping... Internal Control Strengthened to Manage Aftermath

Employee Executes Real Estate Secured Loan Worth 7.6 Billion KRW for Personal Gain
IBK "Measures Established to Prevent Employees from Handling Transactions Involving Their Own Associates"

[Asia Economy Reporter Park Sun-mi] IBK Industrial Bank of Korea has decided to impose restrictions on handling tasks related to oneself following the detection of an employee who profited by executing real estate mortgage loans worth 7.6 billion KRW under the names of family members.

On the 1st, IBK Industrial Bank of Korea stated, "As part of strengthening the internal control system, from now on, bank employees will not be able to handle tasks related to their own related persons," adding, "We have taken measures to make it impossible to process such tasks electronically." The bank explained, "We will also remind employees of this incident to prevent similar accidents from recurring."

Recently, the bank detected an employee who executed real estate mortgage loans worth 7.6 billion KRW under the names of his family members, and after an internal audit and investigation, the employee was dismissed.

The employee executed 'self' real estate mortgage loans targeting five corporate companies and individual businesses where his wife, mother, and other family members served as CEOs from March 2016 to the first half of this year. Through these 'self loans,' the employee purchased 29 residential real estate properties, including apartments, officetels, and multi-family houses in the Hwaseong and Bucheon areas of Gyeonggi Province, worth 7.57 billion KRW.

Although employees cannot process loans for themselves, a systemic 'loophole' allowed them to handle tasks related to their own related persons. The bank belatedly detected the employee's execution of large-scale loans to related persons and, through an internal investigation, found violations such as non-compliance with loan and deposit handling procedures and actions against 'proper management,' resulting in the employee's dismissal. While strengthening the internal control system, the bank is also taking follow-up measures such as recovering the real estate mortgage loans according to subsequent procedures.

However, criticism has become inevitable as the national policy bank failed to fulfill its responsibilities during a period when the government was pouring out real estate regulation policies and making every effort to restrict real estate speculation, allowing an employee's 'self' real estate mortgage loans due to lax system management.

This content was produced with the assistance of AI translation services.