'Self-Loans' for Stock Investment by Stealing Customer Names... 160 Billion KRW in Financial Accident Damages Over 5 Years

Yoon Chang-hyun, member of the People Power Party

[Asia Economy Reporter Song Seung-seop] It has been identified that over 100 billion KRW in damages occurred due to financial accidents at banks over approximately five years. In some commercial banks, so-called 'self-loans,' where individuals borrow money under their own name, as well as theft and embezzlement incidents, have also taken place.

According to data submitted by the Financial Supervisory Service to Yoon Chang-hyun, a member of the National Assembly's Political Affairs Committee from the People Power Party, a total of 182 financial accidents occurred at 20 commercial banks from 2017 until last month. Among these, 115 cases happened at the five major commercial banks: KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup. The total damage amounted to 163.3 billion KRW.

Financial accidents refer to acts by affiliated executives or employees that are illegal or unfair and cause harm to institutions or financial consumers. The types of financial accidents recorded include fraud, embezzlement, misappropriation, breach of trust, theft, and embezzlement.

The banks with the most frequent financial accidents were KB Kookmin Bank and Hana Bank, with a total of 24 cases each. Nonghyup Bank had 23 cases, while Shinhan Bank and Woori Bank each had 22 cases. Industrial Bank of Korea and SC First Bank recorded 19 and 13 cases, respectively.

The bank with the largest amount of damages was Woori Bank, with 42.3 billion KRW over 22 cases. Busan Bank followed with 30.6 billion KRW over 5 cases, then Hana Bank with 14.2 billion KRW (24 cases), NH Nonghyup Bank with 13.9 billion KRW (23 cases), Daegu Bank with 13.4 billion KRW (4 cases), and Shinhan Bank with 10.4 billion KRW (22 cases).

By year, after 31 financial accidents worth 22.3 billion KRW occurred in 2017, about 30 to 40 cases happened annually. This year, there have been 22 financial accidents amounting to 24.7 billion KRW. Among these, 13 cases involved embezzlement or misappropriation, and 4 cases were fraud.

This year, at NH Nonghyup Bank, an employee was caught embezzling loan funds by holding customers' passbooks and IDs for stock investments, and at Hana Bank's Busan branch, a credit officer was caught embezzling tens of billions of KRW by executing improper loans to himself.

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