'KRW 300 Billion Embezzlement' Kyongnam Bank Faces 6-Month New PF Business Suspension Sanction

BNK Gyeongnam Bank, where an embezzlement incident related to a real estate project financing (PF) worth 300 billion won occurred last year, has received severe disciplinary action from financial authorities.

According to the Financial Services Commission and Gyeongnam Bank on the 27th, Gyeongnam Bank has been restricted from handling new PF transactions for six months.

Related executives and employees have also been subject to disciplinary measures ranging from suspension to reprimand.

Gyeongnam Bank emphasized, "This sanction is limited to new PF loans, and existing PF projects will operate normally, so there will be no damage to existing PF customers or general customers."

Gyeongnam Bank promised to strengthen its internal systems to prevent recurrence and to prioritize customer protection and trust recovery as its top tasks, fulfilling its role as a responsible financial institution.

Gyeongnam Bank stated, "We humbly accept the decision of the financial authorities and will transform into a more transparent and trusted bank through this. We will achieve substantial change and innovation so that customers and the local community can feel safe and confident."

Meanwhile, according to the Financial Supervisory Service's embezzlement investigation last year, Lee (52), an employee of Gyeongnam Bank's Investment Finance Department, embezzled about 300 billion won from 2008 to 2022 through false loan handling and document forgery.

This is the largest embezzlement case in the history of the financial sector.

Lee was sentenced to 35 years in prison in the first trial last August.

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