The Industrial Bank of Korea, involved in a 882 billion won unfair loan scandal, will strengthen internal controls to prevent conflicts of interest.
On the morning of the 26th, CEO Kim Sung-tae and other executives of the Industrial Bank of Korea, along with regional headquarters heads, examination center heads, and heads of departments related to internal control, held an expanded executive meeting at the bank’s headquarters in Jung-gu, Seoul, and announced the 'IBK reform plan.'
The Industrial Bank of Korea will receive 'unfair loan prevention confirmation letters' from responsible staff and examiners at every stage of the loan process to prevent the recurrence of unfair loan scandals. This is to ensure that there are no conflicts of interest regarding loans handled by the employees themselves, which will be documented. A databases of employee relatives' information will also be established. Furthermore, an 'approved loan inspection organization' will be newly created to retroactively check if already approved loans have any issues.
Additionally, an independent whistleblower channel located externally will be established. This will fundamentally block disadvantages to whistleblowers and promote immunity for voluntary reporters. External experts will be recruited to report misconduct during investigations, and an 'audit advisory group' composed of internal and external experts will also be operated.
The Industrial Bank of Korea plans to launch an 'IBK reform committee' soon to manage the overall internal controls, ensuring that this reform plan does not remain a one-time declaration.
During the meeting, CEO Kim said, “I sincerely apologize to the customers and the public who were disappointed by this incident,” adding, “We will take this as a thorough opportunity for reflection and do our best to restore trust by establishing measures to prevent recurrence.”