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Photo courtesy of IBK Industrial Bank of Korea |
[Alpha Biz= Paul Lee] SEOUL, July 4 — An employee of Industrial Bank of Korea (IBK) has been referred to prosecutors on charges of embezzlement after allegedly approving ₩5 billion (approx. $3.6 million) in unauthorized loans to a company under their family’s name.
According to financial industry sources on Thursday, the Seoul Seongdong Police Station transferred the employee, identified only as “A,” to the prosecution in early May without detention. The individual worked at a local IBK branch in Seoul.
Investigations revealed that A processed the loans over a three-month period starting early last year. While in charge of corporate loan operations, A reportedly bypassed internal controls by reviewing and approving the loan applications themselves.
The misconduct came to light following an internal whistleblower report, which triggered an audit and subsequent police investigation.
IBK is said to have taken disciplinary action against the employee and successfully recovered the full loan amount.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
