IBK, Measures to Prevent Employee Self-Loans... "Prohibition of Loans to Relatives"

Banker Controversy Over 7.6 Billion Won Loan Under Family Name
Yoon Jong-won, IBK President, Expresses "Regret"

Seoul Euljiro Industrial Bank of Korea Headquarters

[Asia Economy Reporter Kim Min-young] IBK Industrial Bank of Korea announced measures to prevent recurrence related to the recent 7.6 billion KRW 'self-loan' incident involving an employee on the 3rd.

This comes two days after it was revealed that an employee at one branch executed a total of 29 real estate secured loans amounting to approximately 7.6 billion KRW under the names of his family members and was dismissed.

First, the internal control system will be strengthened. Internal regulations and a computerized system will be established to fundamentally prohibit loans to employees and their spouses' relatives. Continuous monitoring will be conducted to check whether any loan involves an employee's relatives.

Education will also be provided to all employees to prevent conflicts of interest and to enhance integrity awareness.

In case of similar incidents, not only the responsible employee but also those with managerial responsibility will be dealt with under a zero-tolerance policy.

Previously, IBK Industrial Bank of Korea imposed the highest disciplinary action, 'dismissal with disciplinary measures,' on the problematic employee. The bank also filed a criminal complaint on charges such as fraud and is proceeding with the full recovery of the loan amount.

Related parties, including the branch manager who had managerial responsibility, will also be held accountable through additional investigations. The bank stated that similar cases will be investigated and handled strictly according to principles without exception if detected.

An IBK Industrial Bank of Korea official said, “President Yoon Jong-won deeply regrets and feels sorry for the occurrence of an incomprehensible incident,” adding, “He strongly ordered severe punishment for those involved in this matter, as well as system improvements and regulation supplements to prevent recurrence.”

Until recently, Deputy Manager A, who worked at a branch in Seoul, provided a total of 29 loans amounting to 7.6 billion KRW from March 2016 to the first half of this year to corporations operated by his mother and wife. The loan funds were reportedly used to purchase 29 real estate properties in the Gyeonggi-do area, generating huge profits, which sparked controversy.

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