Kim Seong-tae, president of Industrial Bank of Korea, said on the 25th regarding the discovery of 882 million won in unlawful loans, "I apologize for causing concern to customers and the public," and noted, "We will do our best to use the results of the FSS inspection as a thorough opportunity for reflection and to implement meticulous follow-up measures and preventive measures against recurrence."
On this day, after the FSS announced the results of its inspection of unlawful loans, Kim noted, "Industrial Bank of Korea plans to soon announce intensive reform measures covering its work processes, internal controls, and organizational culture, including the points raised by the FSS."
Earlier, the FSS announced that it had uncovered a total of 882 million won in unlawful loans at Industrial Bank of Korea through its announcement of recent inspection cases related to unlawful transactions with stakeholders. This amount exceeds three times the accident amount of 240 million won disclosed by Industrial Bank of Korea in January. The FSS inspection revealed that a retired employee of Industrial Bank of Korea colluded with their spouse, current employees, and others to obtain or facilitate unlawful loans by inflating the value of real estate collateral over a seven-year period. It was also discovered that a branch of the bank was located in a building owned by this employee through lobbying.
The FSS stated, "We will impose strict sanctions in accordance with relevant laws and procedures regarding unlawful matters confirmed through inspections, including unlawful loans," and added, "We will report and notify investigative agencies about the criminal suspicions of related executives and employees, and actively cooperate in the investigations to clarify the facts regarding unlawful matters and related individuals."