Woori Bank, which has been embroiled in unfair lending and various financial incidents, will prioritize strengthening internal controls this year. Starting last month, branch managers have directly participated in vault management and introduced an anonymous reporting system. Additionally, a new position called internal control specialist will be created to conduct occasional audits.
According to a comprehensive report by ChosunBiz on the 9th, Woori Bank has recently established a new position called internal control specialist. Personnel assigned to this role will be selected from branch managers with expertise in the operational processes of bank branches. The internal control specialist will be responsible for the effective internal control activities of the headquarters' sales organization. By having the internal control specialist conduct periodic audits, which were previously carried out by the branches themselves, the intention is to enhance the effectiveness and professionalism of the audits.
Specifically, the internal control specialist will conduct periodic audits every month at the sales sites and perform unannounced checks together with the internal control branch manager. Training sessions will also be held for the internal control officers at the respective branches. Additionally, inspection items will be selected based on the characteristics of each sales department, and the internal control specialist will interview and educate employees identified with abnormal signs related to internal controls. Woori Bank has decided to submit monthly compliance monitoring plans and reports from the specialists.
Incidents at Woori Bank have been ongoing. In the last year alone, there were three major financial incidents exceeding 30 billion won between June and October, severely damaging trust. Additionally, it has been identified that Woori Bank has recently spent the most on operational expenses among the top five banks.
This comes just two years after a large-scale embezzlement incident involving over 70 billion won occurred at Woori Bank's headquarters in 2022. Notably, a financial incident that occurred in August involved improper loans related to Shin Tae-seung, the former chairman of Woori Financial Group, which were not reported to financial authorities and were later disclosed, causing significant controversy.
Woori Bank has set internal controls as its banner this year. Starting from the 31st of last month, branch managers will directly participate in vault management to strengthen internal controls at the sales sites. The branch managers will open the vault on the first business day of each month and close it on the last business day, while directly checking various aspects of vault operations, including opening and closing the vault, inspecting the locking mechanism, and evaluating the internal management status.
In addition, an anonymous reporting system called 'Helpline' provided by the internal control specialist company, Red Whistle, has been introduced. If bank employees use this channel, they can report internal misconduct to the relevant personnel without fear of IP tracking or exposure of their identity. The inspection department can also notify anonymous whistleblowers of the results through this channel.
Jeong Jin-wan, the chairman of Woori Bank, emphasized internal controls during his inauguration speech earlier this year. In his speech, he first mentioned 'trust,' stating, "Only if it is not formal but 'genuine internal control' can trust be strengthened," and he added, "We will improve systems and workflows so that employees can reduce unnecessary work and have more time and mindset to connect with customers."