'Computer Manipulation as if Repaying Card Debt'... Multiple Fines for NongHyup Bank Employees

Financial Authorities Impose a Fine of 584 Million Won on NongHyup Bank

[Asia Economy Reporter Kwangho Lee] NH Nonghyup Bank employees were fined for manipulating the system to make it appear as if credit card payments had been made, only to settle the payments later.

According to financial authorities on the 19th, the Financial Services Commission resolved the "Comprehensive Inspection Result Measures for Nonghyup Bank" at its regular meeting last March.

The FSC imposed fines ranging from 1.8 million to 25 million KRW on six Nonghyup Bank employees.

From August 2016 to March 2018, these employees manipulated the system to show that credit card payments under their own or family members' names had been repaid on the due date.

After the system manipulation on the same day, when the card loan (cash service) limit was restored, they used cash services to settle the falsely repaid amounts. Using this method, they processed deposits for a total of approximately 370 million KRW across 106 cases.

According to the Bank Act and its Enforcement Decree, banks must not provide undue benefits to users by processing deposits without actually receiving funds.

Two other employees were fined for processing deposits totaling about 16 million KRW across six cases without actually receiving funds, aiming to gain profits from foreign exchange transactions.

The financial authorities also imposed a fine of 584 million KRW on Nonghyup Bank as an institutional sanction.

The illegal activities of Nonghyup Bank employees were uncovered during the Financial Supervisory Service's comprehensive inspection of Nonghyup Bank.

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