[Alpha Biz= Paul Lee] Hana Bank has disclosed its sixth financial incident of 2024, involving approximately KRW 4.79 billion (USD 3.4 million) in unauthorized loans, marking another blow to internal control confidence in South Korea’s financial sector.



According to industry sources on July 21, Hana Bank publicly reported on July 18 a financial incident stemming from misconduct including fraudulent loans (breach of fiduciary duty), external financial fraud, bribery, and private lending.



An internal investigation revealed that an employee (referred to as “Mr. A”) executed excessive loans using falsified documents over a period of nearly eight years, from June 8, 2016, to September 3, 2024. The employee is also suspected of accepting illicit payments from loan-related parties and engaging in private money lending.



Upon identifying the misconduct through an internal audit, Hana Bank placed the employee on administrative leave and announced plans to file criminal charges.



The latest case raises growing concerns over repeated financial incidents at Hana Bank. In April, another employee was found to have issued KRW 7.4 billion in improper loans in exchange for bribes from a client. Additionally, four cases of external financial fraud have been disclosed by the bank this year alone.



Industry observers have called for strengthened internal control systems and more proactive risk governance measures across South Korea’s banking sector.

 

 

 

 

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