The prosecution conducted a search and seizure against current and former employees of the Industrial Bank of Korea in connection with the "240 billion won illegal loan case."
The Seoul Central District Prosecutors’ Office Anti-Corruption Investigation Division 1 (Director General Lee Joon-dong) searched about 20 corporations associated with loan officers and borrowers from the Industrial Bank of Korea located in Seoul and Incheon related to allegations of illegal loans that day.
The Industrial Bank of Korea reported in January that a financial accident involving 23.95 billion won had occurred due to business embezzlement and other issues. It is known that current and former employees of the Industrial Bank of Korea inflated the value of collateral on real estate to issue more illegal loans at branches located in Gangdong District, Seoul, from June 2022 to November of last year.
In response, the Financial Supervisory Service conducted an on-site inspection of the Industrial Bank of Korea and referred the matter to the prosecution, leading to the commencement of the investigation. The prosecution is expected to look into whether there was organizational involvement from the Industrial Bank of Korea in the illegal loan process.