Global Bond Trends Monitored at 'Bangseokjip'?… San-eun Branch Manager Fined for 82 Cases of Corporate Card Misuse

Seoul Yeouido Industrial Bank [Photo by Yonhap News]

[Asia Economy Reporter Kim Daehyun] A branch manager of the Korea Development Bank (KDB) was sentenced to a fine after being caught by the Board of Audit and Inspection for using a corporate card at entertainment bars under the pretext of business meetings for several years.

According to the legal community on the 29th, Nam Shinhyang, a judge of the Criminal Division 17 at the Seoul Central District Court, recently sentenced A (54), a branch manager of KDB, who was indicted on charges of breach of trust in the course of business, to a fine of 15 million KRW.

Earlier, A was prosecuted on charges of using a corporate card, which was provided for business promotion expenses, to spend approximately 15 million KRW on alcohol and other expenses at entertainment bars 82 times from 2015 to 2018.

The code of conduct for executives and employees of KDB, a policy bank, stipulates that "budgets for business execution must not be used for purposes other than intended, causing financial damage to the bank." The KDB budget operation guidelines also caution against using corporate cards in restricted industries, including entertainment.

However, A used the corporate card at 35 entertainment establishments, commonly known as "bangseokjip," where entertainment workers were present, and then processed the expenses as if various meetings had been held. He falsely fabricated corporate card usage records under the pretext of meetings or gatherings such as "Global Bond Market Trends Analysis," "Overseas Public Bond Issuance Market Trends Analysis," and "Asian Banking Industry Outlook Meeting" and submitted them to KDB.

This fact was first revealed in the Board of Audit and Inspection's "KDB Institutional Operation Audit Report" in July last year. The Board pointed out, "Although these establishments are generally classified as 'general restaurants' or the like, A appears to have selectively used only entertainment bars where drinking and dancing are possible," and added, "He recorded the amount spent per person as not exceeding 30,000 KRW or sometimes wrote some expenses as if they were used by another team leader in the same department, not himself."

According to the Board of Audit and Inspection, A accepted the audit results early last year and appealed for leniency, saying, "Considering the excessive work stress, please take into account the use of the corporate card at entertainment bars." Following the Board's recommendation for disciplinary action stating that "suspension is appropriate according to the rules on rewards and punishments," KDB imposed a six-month suspension on him.

The court also pointed out, "The breach of trust occurred over three years, and the amount of damage is not insignificant." However, it added, "The defendant confessed to all the crimes, showed remorse, and repaid the full amount of the improper use, so the damage was restored," and "Considering that the defendant received disciplinary action following the Board's request, that a prison sentence or higher would likely lead to automatic retirement under employment regulations, and taking into account factors such as age, character, and family relations, the sentence was determined."

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