OK Savings Bank, the largest savings bank by asset size, has faced severe penalties for failing to honor its commitment to withdraw from the lend industry.
On the 10th, according to the financial sector, the Financial Supervisory Service notified OK Savings Bank of a warning and fines of 372 million won. Financial penalties range from registration or approval cancellations, business suspensions, corrective orders, warnings, to institutional notices, with warnings classified as severe penalties.
In June 2023, OK Savings Bank received approval for a business transfer to absorb and merge the assets and liabilities held by its affiliate, Rush & Cash, on the condition that OK Financial Group completely withdraws from the lend industry. Earlier this year, OK Financial Group closed all its affiliates and withdrew from the lend industry. However, inspection results revealed that some affiliates within OK Financial Group engaged in lending until last year.
Additionally, an employee at OK Savings Bank, identified as A, was found to have embezzled 169 million won by arbitrarily terminating the accounts of six long-term, non-contact customers whose savings accounts had matured from March to October 2021. Another employee, identified as B, was investigated for embezzling 253 million won by directly managing the bank accounts, stamps, and passwords of five acquaintances from 2014 to 2018.
OK Savings Bank was also found to have submitted false information by omitting details of lend companies within its affiliates during the major shareholder qualification review and failing to disclose relevant information in its management disclosures.