[Alpha Biz= Paul Lee] Seoul, July 12, 2025 — KB Kookmin Bank has reported another major financial fraud incident involving external parties, just weeks after disclosing a previous case. The latest case involves KRW 2.61 billion (approx. USD 1.9 million) in fraudulent loans.



According to the banking industry on July 12, the bank disclosed that the fraud occurred on September 26, 2023, and was later identified through a branch report that triggered internal review by the head office. The estimated loss amount is still under assessment, the bank said.



The fraud was committed during the disbursement of a facility loan secured against a building under a sales contract with a social welfare foundation. The borrower allegedly forged documents and misled the bank to obtain the loan.



Under Korean law, any sale of property owned by a social welfare foundation requires official government approval to dispose of basic assets. However, the borrower falsely claimed that such approval had been granted.



KB Kookmin Bank stated,

“We have filed criminal charges against those involved and will determine the recoverable amount following further investigation.”



This marks the second financial fraud disclosure by KB Kookmin Bank in less than a month. On June 27, the bank reported a separate KRW 2 billion fraud case that had occurred over a prolonged period between June 2019 and July 2022.



The repeated incidents have raised concerns over the bank’s internal risk controls and due diligence in loan processing.

 

 

 

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