Financial Services Commission's 5 Public Institutions Pay 500 Million KRW in Salaries to Employees Suspended for Embezzlement and Sexual Misconduct

Assemblyman Kang Myung-gu: "Disciplinary Measures Must Be More Effective"

It has been revealed that public institutions under the Financial Services Commission paid salaries to employees who were suspended due to reasons such as embezzlement.

According to data submitted by the Financial Services Commission to Kang Myung-gu, a member of the National Assembly's Political Affairs Committee from the People Power Party, from 2019 to July of this year, among the seven public institutions under the Financial Services Commission (Korea Credit Guarantee Fund, Korea Deposit Insurance Corporation, Korea Asset Management Corporation, Korea Housing Finance Corporation, Korea Inclusive Finance Agency, Industrial Bank of Korea, Korea Development Bank), five institutions paid a total of 536 million won in salaries to 60 employees who were suspended due to reasons such as embezzlement or sexual misconduct.

The Industrial Bank of Korea paid 314 million won in salaries to 32 employees who were suspended. The Korea Asset Management Corporation compensated an employee disciplined for sexual harassment with 3.3 million won per month during the suspension period. The Korea Development Bank also paid 14 million won in salary to an employee who embezzled budget funds.

The Ministry of Economy and Finance has recommended since 2021 through related regulations that salaries should not be paid to disciplined employees during their suspension period. However, according to Representative Kang, five institutions under the Financial Services Commission did not follow this guideline, citing labor-management consultations as the reason.

Representative Kang said, “Disciplinary suspension is not a reward leave, and compensating salaries during the suspension period not only condones moral hazard in public institutions but also significantly undermines the transparency of the institutions. Stronger measures should be established to enhance the effectiveness of disciplinary actions and restore public trust.”

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