IBK Industrial Bank Reports Improper Loans Exceeding 4 Billion KRW to Authorities

Seven Employees Implicated at Gyeonggi Branch Confirmed
Details Reported to Financial Supervisory Service

IBK Industrial Bank has confirmed the occurrence of an improper loan incident involving more than 4 billion KRW at its Gyeonggi Province regional headquarters and has reported the matter to financial authorities.

According to the financial sector on June 23, the bank recently conducted an internal audit and discovered that, over several years, seven employees?including the branch manager?at a branch located in Gyeonggi Province had provided improper loans totaling more than 4 billion KRW to companies and had personally profited from interest and dividends.

The bank has placed these employees on standby and reported the details to the Financial Supervisory Service.

A representative of IBK Industrial Bank stated, "We independently uncovered the improper loans while conducting a rigorous internal audit as part of efforts to strengthen our internal control system," adding, "Most of our reform measures?including the establishment of a database of employees' relatives, a whistleblowing channel for insiders to report externally, and a checklist to prevent conflicts of interest?are expected to be completed within this month."

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