Financial Supervisory Service Begins Regular Inspection of KB Financial Group and Kookmin Bank

[Image source=Yonhap News]

The Financial Supervisory Service (FSS) has commenced a regular inspection of KB Financial Group and KB Kookmin Bank.

According to financial sources on the 19th, the FSS will conduct a six-week regular inspection of KB Financial Group and Kookmin Bank from the 22nd to October 3rd. Approximately 40 personnel will be deployed for the inspection. During this regular inspection, the FSS plans to focus on examining the internal control operations of KB Financial Group and Kookmin Bank, which failed to prevent financial incidents such as the incomplete sales of Hong Kong H Index equity-linked securities (ELS), embezzlement, breach of trust, and fraudulent loans.

This is the first time in about three years that KB Financial Group and Kookmin Bank are undergoing a regular inspection by the FSS. The FSS previously conducted a regular inspection of these institutions in June and July 2021.

At Kookmin Bank, an incident occurred last year where employees in the securities agency division obtained illicit gains amounting to tens of billions of won by using undisclosed information. This year, there have been three cases of loan breach of trust incidents exceeding 10 billion won each. The total amount involved in these related incidents reaches 48.8 billion won.

Reviewing practices related to the sale of high-risk products is also a key issue. As a result of inspections on Hong Kong H Index ELS conducted by the FSS since the first half of this year, Kookmin Bank sold the largest amount in the banking sector, totaling 8.1972 trillion won.

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