A 58.3 billion won financial incident tied to transaction counterparties' corporate finance and suspected fraud occurred at Korea Development Bank (KDB).
According to the financial sector on the 11th, Korea Development Bank (KDB) disclosed on the 10th that it learned the incident occurred on the 22nd of the previous month during the Korean National Police Agency's seizure notice and visit.
The amount involved is about 58.3 billion won. However, this figure does not reflect the value of the collateral, so the size of the loss has not yet been determined. A police investigation is underway over suspected fraud by a transaction counterparty, and the amount may change depending on the findings.
Korea Development Bank (KDB) has deployed security services for the collateral and plans to enforce the security interest if an event of default is confirmed.
A Korea Development Bank (KDB) official said, "There are no arrears from the transaction counterparty, so this falls under 'normal credit,' and whether fraud occurred will be finally decided based on the investigation results." The official added, "There is substantial collateral, so even if an issue arises, the potential actual loss would be lower than what was disclosed."