[Woori Bank Embezzlement] Jung Eun-bo, Financial Supervisory Service Chief, "Considering Audit Firm Inspection Start"

Eunbo Jeong, Governor of the Financial Supervisory Service

[Asia Economy Reporter Song Seung-seop] The Financial Supervisory Service (FSS) is considering whether to initiate an audit of the accounting firm in connection with the embezzlement incident involving 60 billion won at Woori Bank.

On the 29th, at a meeting with foreign bank CEOs held at the Millennium Hilton in Jung-gu, Seoul, Jeong Eun-bo, Governor of the FSS, told reporters regarding the recent embezzlement incident at Woori Bank, "There is a question of why the external audit missed the embezzlement." When asked if they are considering starting an audit of the accounting firm, he replied, "We are definitely reviewing it."

An audit refers to the FSS’s process of verifying whether a specific company’s business reports, financial statements, and audit reports comply with accounting and auditing standards. If violations are found, responsibility is determined and sanctions are imposed. Since Woori Bank received an unqualified opinion during the accounting audit despite the embezzlement occurring, the responsibility appears to be shifting toward the accounting firm.

Governor Jeong of the FSS explained, "Basically, the accounting firm must verify during the audit that the cash on hand definitely exists and that inventory assets are present," adding, "We need to see why the investigation was not properly conducted."

He further added, "Those responsible for the internal control system should first check whether they were aware of the facts in advance, and we will proceed accordingly."

Regarding criticism that the financial authorities failed to detect the embezzlement despite inspections and supervision during the embezzlement period, he said, "I think it is much more desirable for such matters to be uncovered through inspections and supervision," and mentioned, "We will also investigate why it was not detected through supervision."

About the ongoing special inspection at Woori Bank, Governor Jeong emphasized, "What the financial authorities need to do is to investigate the fundamental issues of what loopholes in internal control caused this, rather than focusing on criminal punishment," and added, "Basically, we will actively review improvements related to internal control systems."

Meanwhile, it was recently revealed that a deputy manager-level employee in the Corporate Improvement Department at Woori Bank’s headquarters embezzled 60 billion won over six years. This fund is known to be part of the proceeds from the sale of Daewoo Electronics, which Woori Bank had previously managed. The employee has surrendered to the police.

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