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Photo = Kyongnam Bank |
[Alpha Biz= Reporter Kim Sangjin] The Financial Services Commission (FSC) has imposed a severe penalty on BNK Kyongnam Bank following the largest embezzlement case in South Korea's financial history, involving approximately ₩300 billion.
During a regular meeting on the 27th, the FSC decided to suspend Kyongnam Bank's real estate project financing (PF) operations for six months. This suspension, just one step below a license revocation, is categorized as a heavy penalty.
Last year, it was revealed that an employee, Mr. Lee, responsible for PF lending, had embezzled ₩3.089 trillion over 14 years by diverting loan repayments and principal. In August 2024, the Seoul Central District Court sentenced Mr. Lee to 35 years in prison.
The Financial Supervisory Service (FSS) recommended the six-month suspension due to inadequate internal controls at Kyongnam Bank, which the FSC upheld. Additional disciplinary measures were also issued to bank executives and employees, ranging from warnings to reprimands.
On the same day, the FSC also confirmed a fine of ₩3.46 billion against Kakao Mobility for accounting irregularities. CEO Ryu Geung-sun and another executive were fined ₩692 million each. The Securities and Futures Commission (SFC) previously found Kakao Mobility guilty of inflating operating revenue and costs, deeming the violation severe and referring the case for prosecution.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
