Yoon Seok-heon: "Promptly Inspect the Actual Condition of Land Collateral Loans in the Financial Sector Amid LH Scandal"

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Yoon Seok-heon, Governor of the Financial Supervisory Service, has ordered an inspection of land-secured loans by financial companies in relation to the land speculation allegations involving employees of Korea Land and Housing Corporation (LH).

At the executive meeting that day, Governor Yoon stated, "For Buksiheung Nonghyup, where loans to LH employees have been confirmed, promptly commence on-site inspections within this week. Also, thoroughly examine the overall status of non-residential collateral loans such as land by financial companies and their loan processes, and rigorously improve any issues found."

He added, "It is necessary to closely cooperate with the government joint special investigation headquarters during the inspection and review process," and urged, "Since this matter has attracted great public attention, please approach it with a strong sense of responsibility and actively engage."

The financial authorities have decided to begin an inspection of non-residential collateral loans across all financial sectors. The Financial Supervisory Service will receive documents from each financial institution, check loan volumes by region and type, and based on this, select targets requiring on-site inspections for direct examination.

Since the special investigation headquarters’ probe and the inspection work may partially overlap, it is expected that the scope of investigation will be coordinated with the special investigation headquarters prior to on-site surveys. The Financial Services Commission and the Financial Supervisory Service have decided to dispatch a total of five personnel to support the special investigation headquarters’ financial investigation.

From the Financial Services Commission, Director Kim Dong-hwan, who previously served as head of the real estate policy team at the Ministry of Strategy and Finance, and one administrative officer will be dispatched. From the Financial Supervisory Service, a total of three personnel including one senior examiner and two senior inspectors, among whom is a certified public accountant, will be dispatched.

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