[Exclusive] Woori Bank Implements Minor Personnel Changes... Expands Inspection Staff

[Asia Economy Reporter Song Seung-seop] Woori Bank is understood to have expanded its inspection personnel through a small-scale personnel reshuffle. This is interpreted as a measure to manage the recent embezzlement incident involving 60 billion won and to smoothly respond to investigations and inspections by the police and the Financial Supervisory Service.

According to the financial sector on the 3rd, Woori Bank conducted a small-scale personnel reshuffle last week. The reshuffle included employees assigned to the inspection office. No inspection office employees were reassigned to other departments. This means the inspection office personnel itself increased.

Woori Bank's operational risk management organization and structure are broadly divided into three stages. There are the first and second lines that manage risks proactively, and the third line that reviews incidents after they occur. The inspection office is a representative third line that performs independent internal audit and inspection tasks when an incident occurs.

However, since this is not the usual regular personnel reshuffle period and the inspection office has grown in size, the financial sector views this as a personnel move to manage and respond to the embezzlement incident. The overall scale of the personnel reshuffle was small, leading to interpretations that it was a one-point personnel adjustment to strengthen inspection capabilities. In particular, some of the employees assigned to the inspection office are known to have been recognized as competent inspectors and auditors within Woori Bank.

Currently, financial authorities are examining what loopholes existed at Woori Bank regarding the embezzlement case. The Financial Supervisory Service started an unscheduled inspection immediately after the incident but reportedly extended the inspection period. The inspection intensity is increasing by adding three more inspectors to the initial four and securing two IT personnel. The Namdaemun Police Station, which is conducting the investigation, also sent investigators to Woori Bank's headquarters in Jung-gu, Seoul, for a four-hour search and seizure operation the day before.

Meanwhile, Woori Bank Corporate Improvement Department employee Mr. A is suspected of embezzling 61.4 billion won of company funds three times over six years since 2012. Mr. A is currently detained along with his younger brother Mr. B, who is identified as an accomplice.