View of NH Nonghyup Bank headquarters. (Photo=NH Nonghyup Bank)

[Alpha Biz= Reporter Kim Jisun] On the 25th, it was reported that NongHyup Bank uncovered suspected embezzlement involving fraudulent loan transactions at one of its branches in Seoul. 

 

The bank launched an audit on the 20th after discovering the irregularities. Employee A is alleged to have taken out fake loans using the identity of an acquaintance over the course of four years, from June 2020 until this month. The embezzled amount is estimated to be around 11.7 billion KRW. 

 

NongHyup Bank has since filed criminal charges and taken disciplinary action. However, the audit was temporarily halted following the discovery of A’s death. This incident marks the fourth such occurrence at NongHyup Bank this year.

In response, financial authorities are pushing to introduce a "responsibility structure" within the banking sector, aimed at clarifying internal control responsibilities. However, the continued reports of embezzlement incidents have placed the Financial Supervisory Service (FSS) in a difficult position, as these incidents undermine the intended impact of the new policies.

 

 

 

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