Financial Sector and Real Estate Speculation: Establishment of 'Illegal Loan Voluntary Reporting Center'

Intensive Voluntary Reporting Period Until the End of April

[Asia Economy Reporter Park Sun-mi] An illegal loan voluntary reporting center to eradicate real estate speculation has been established in the financial sector and will operate as a voluntary reporting intensive period until the end of this month.

On the 5th, the Korea Federation of Banks, Korea Life Insurance Association, Korea Non-Life Insurance Association, Korea Credit Finance Association, Korea Federation of Savings Banks, NongHyup Central Association, Korea Forestry Cooperative Federation, Korea Federation of Fisheries Cooperatives, and Korea Federation of Credit Unions announced that, together with the Financial Services Commission and the Financial Supervisory Service, they will operate the 'Illegal Loan Voluntary Reporting Center' related to real estate speculation suspicions from the 6th. The voluntary reporting intensive period is from the 6th to the 30th of this month.

This is a follow-up measure to the Financial Authorities' operation of the 'Special Financial Response Team for Real Estate Speculation' and aims to expand the illegal loan voluntary reporting center, currently operated by the Financial Supervisory Service and the Korea Federation of Banks, to the entire financial industry. It is also part of the financial sector's self-purification efforts to eradicate illegal loans linked to real estate speculation within the financial sector and to raise internal awareness.

The subjects eligible to report through the Illegal Loan Voluntary Reporting Center are financial company employees who either wish to voluntarily report 'illegal loans related to speculation' or have identified 'illegal loans by a third party during work.' Reports of illegal loans related to real estate speculation can be made by accessing the voluntary reporting centers (websites) of each financial association or through the Illegal Loan Voluntary Reporting Center.

If a voluntary report of illegal loans related to real estate speculation is made during this voluntary reporting period, administrative sanctions and fines under the 'Regulations on Financial Institution Inspections and Sanctions' will be mitigated. However, if illegal loans related to real estate speculation are confirmed after the voluntary reporting period ends, legal penalties such as administrative sanctions and fines will be strictly applied.

Kim Kwang-soo, Chairman of the Korea Federation of Banks, stated, “The operation of this Illegal Loan Voluntary Reporting Center is an opportunity to enhance the social trust of the financial sector,” and emphasized, “Active participation of financial company executives and employees is necessary.”

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