Financial Institution Employees Embezzled 119.2 Billion KRW... Recovery Rate at 32%

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[Asia Economy Reporter Buaeri] It has been revealed that over the past five years, the amount embezzled by employees in the financial sector has exceeded 100 billion KRW, but the recovery rate is only 32%.

According to the 'Domestic Financial Industry Employee Embezzlement Case Details' received on the 20th from the Financial Supervisory Service by Kang Min-guk, a member of the National Assembly's Political Affairs Committee from the People Power Party, from 2017 to August this year, 181 employees embezzled a total of 119.239 billion KRW from financial companies.

The annual embezzlement amounts were 8.989 billion KRW (45 employees) in 2017, 5.668 billion KRW (37 employees) in 2018, 8.284 billion KRW (28 employees) in 2019, 2.083 billion KRW (31 employees) in 2020, and 15.124 billion KRW (20 employees) in 2021. In 2022, up to August, it reached 79.091 billion KRW (20 employees).

By industry sector, the number of employees who embezzled was highest in banks with 97 employees (53.6%), followed by insurance with 58 employees (32%), securities with 15 employees (8.3%), savings banks with 8 employees (4.4%), and cards with 3 employees (1.7%).

The scale of embezzlement was largest in banks at 90.740 billion KRW (76.1%), followed by savings banks (14.971 billion KRW), securities (8.696 billion KRW), insurance (4.575 billion KRW), and cards (256 million KRW).

Among banks, Hana Bank had the highest number of embezzling employees with 18. For insurance, Dongyang Life Insurance had 8, Cham Savings Bank had 2 for savings banks, and NH Investment & Securities had 4 for securities.

In terms of embezzlement amount, Woori Bank was the largest with 71.657 billion KRW. For insurance, KB Insurance had 1.23 billion KRW, for cards Woori Card had 251 million KRW, for savings banks KB Savings Bank had 7.783 billion KRW, and for securities NH Investment & Securities had 4.012 billion KRW.

According to the Financial Supervisory Service, recent embezzlement incidents in the financial sector have been analyzed to occur due to loan document forgery, unauthorized use and alteration of contract information, and negligence in managing external entrusted companies.

Despite the prevalence of embezzlement, recovery performance has been poor.

From 2017 to 2021, out of a total of 40.148 billion KRW, only 12.78 billion KRW was recovered, resulting in a recovery rate of 31.7%. In particular, savings banks had a recovery rate of only 9.6%.

Assemblyman Kang pointed out, "The Financial Services Commission should increase the internal control workshops for audit and compliance officers, which are currently held once or twice a year by financial sector, to quarterly sessions, and based on the recent on-site inspection results of the Woori Bank embezzlement case, prepare proper financial supervision improvement measures."

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