The Financial Supervisory Service is checking Woori Bank and KB Kookmin Bank for cases of misusing personal business loans for purposes other than intended. The Financial Supervisory Service expanded the scope of its review to four banks after beginning at the end of last month with Hana Bank and NH Nonghyup Bank to examine whether business loans are being used to purchase dwellings.
According to the financial authorities on the 15th, the Financial Supervisory Service recently increased the number of banks subject to on-site inspections for misuse of business loans for purposes other than intended to a total of four. The inspection is part of the government's response to illegal and unlawful real estate transaction. While reviewing data secured from Hana Bank and NH Nonghyup Bank, which were inspected earlier, the Financial Supervisory Service is conducting on-site inspections at Woori Bank and KB Kookmin Bank. The Financial Supervisory Service plans to expand the subjects sequentially while carrying out inspections on a rolling basis.
The government has recently signaled its intent to root out real estate speculation through irregular loans. The financial authorities will inspect all business loans executed since 2021 and conduct focused inspections on areas with high speculative demand such as the three districts of Gangnam and on vulnerable sectors such as secondary financial institutions. If illegal acts are confirmed, the case will be reported to investigative agencies not only for the loan users but also for financial company officers and employees, as well as loan brokers.
Earlier, President Lee Jae-myung wrote on social media on Mar. 17 that "if someone lies that a loan is for business funds to borrow from a financial institution that refuses to provide a real estate purchase loan intended to be used as real estate speculation funds, and then uses it to buy real estate, that person will face criminal punishment for fraud."