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NH Nonghyup Bank Headquarters (Courtesy of NH Nonghyup Bank) |
[Alpha Biz= Paul Lee] Seoul, September 28, 2025 – NH Nonghyup Bank has reported financial incidents totaling more than KRW 80 billion (approx. USD 58 million) over the past four years and seven months, with a recovery rate of only 16%, according to data disclosed by Rep. Yoon Jun-byeong of the Democratic Party of Korea.
Between 2021 and July 2025, a total of 38 cases of financial misconduct occurred at Nonghyup Bank, amounting to KRW 80.06 billion in damages. The number of incidents has surged in recent years: six cases worth KRW 394 million in 2023, compared to 19 cases worth KRW 45.37 billion in 2024. As of July 2025 alone, eight incidents totaling KRW 27.54 billion had already been reported.
By type, embezzlement accounted for 14 cases, private lending for 7, fraud for 7, and breach of trust for 4. In terms of financial impact, fraud represented the largest share with KRW 43.02 billion (54%), while embezzlement and breach of trust combined for KRW 36.89 billion (46%). Notably, four large-scale cases exceeding KRW 10 billion occurred in 2024 and 2025.
However, recovery performance remains poor. Of the total losses, KRW 67.55 billion (84%) remains unrecovered. The recovery rate dropped from 52% in 2023 to 12% in 2024, and further to just 2.4% in 2025.
Disciplinary measures have been taken against staff, including 18 dismissals, 8 suspensions, and 2 pay cuts, with further actions expected as some cases are still under review by the Financial Supervisory Service.
Industry observers warn that these repeated cases highlight serious deficiencies in loan management and financial ethics within the institution.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
