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BNK Kyongnam Bank. (Photo= BNK Kyongnam Bank) |
[Alpha Biz= Reporter Paul Lee] According to financial sources, financial authorities are scheduled to finalize the level of sanctions regarding the embezzlement incident of 3.089 billion won at Kyeongnam Bank as early as next month. Given the substantial amount of embezzlement and widespread internal control deficiencies, disciplinary action is highly likely.
As of the 7th, the embezzlement amount at Kyeongnam Bank has been reported to be 3.089 billion won, making it practically the largest embezzlement case in the domestic financial market since its establishment.
Last August, the Financial Supervisory Service (FSS) initiated an urgent on-site inspection upon receiving reports that an employee at Kyeongnam Bank had been involved in embezzlement related to real estate project financing (PF) loans.
The inspection revealed that the bank employee, who had been in charge of PF loan operations in the investment finance department for 15 years, had embezzled funds by repeatedly diverting loan proceeds and principal repayment funds from PF project sites. While the embezzlement amount was initially in the 500 billion won range during the early stages of the investigation, it has now exceeded 3 trillion won.
Following the submission of the inspection report and after going through the deliberation process of the sanctions committee, financial authorities plan to finalize sanctions against Kyeongnam Bank as early as next month. Given the large-scale embezzlement incident and the widespread internal control deficiencies within the bank, disciplinary measures such as severe sanctions are under serious consideration.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
