[Reporter’s Notebook] Embezzlement Incidents Have Become an Annual Event in the Banking Sector

"Oh, embezzlement again?" This was the simultaneous reaction from reporters of other companies when a recent embezzlement incident occurred at Shinhan Bank.

Over the past year, while covering banks, it has been observed that financial incidents involving embezzlement or breach of trust have occurred repeatedly, not only in secondary financial institutions but also in the five major banks of the first financial sector: KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup. There is even a sarcastic remark that these incidents have become a kind of annual event. Recently, an employee at Shinhan Bank’s Gangnam Central Branch embezzled several hundred million won. In February, there was an incident at Nonghyup Bank where an employee stole 15 million won in front of a customer. Even after last year’s shocking embezzlement case involving 60 billion won at Woori Bank, similar incidents have continued to occur steadily. Banks, whose image of "trust" is their competitive edge, suffer a "fatal blow" every time an embezzlement case arises.

Of course, banks are tightening controls by strengthening internal oversight each time. According to bank employees, internal audits and surprise inspections are conducted frequently. A bank employee I recently met said, "After every business day, we reconcile the cash on hand, and even if there is a discrepancy of just a few hundred won, it’s not a situation where you can just say it was a mistake while scratching your head," conveying a strict atmosphere. In the case of Shinhan Bank, they even established a 'Compliance Management Department' through an organizational restructuring last year to tighten controls, yet another embezzlement incident occurred right in the heart of Gangnam. Ultimately, it is difficult for banks to fully control and prevent individual employees’ misconduct in advance.

For this reason, there have been continuous calls to increase the severity of punishments for embezzlement and breach of trust crimes. According to sentencing guidelines referenced by judges, even when embezzlement exceeds 30 billion won, the recommended sentence with aggravated punishment is about 7 to 11 years. Moreover, according to the Supreme Court Judicial Yearbook, the rate of suspended sentences for embezzlement and breach of trust crimes reached 47.5% (as of 2021). In an era of high inflation and high interest rates, the lives of ordinary people are becoming tougher, and worries about "Is it safe to entrust my money now?" are increasing. It is time to apply a heavier standard of judgment to bank employees’ embezzlement crimes.

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