Saemaeul Geumgo Central Association "Full Compensation for Embezzlement Incident... Special Investigation Underway"

[Asia Economy Reporter Jin-ho Kim] The National Credit Union Federation of Korea (NACUFOK) apologized to customers on the 26th regarding the recent embezzlement incident involving an employee at Songpa Central Saemaeul Geumgo and announced that it will fully compensate the affected customers.

In a statement released that day, NACUFOK said, "We deeply regret the embezzlement incident that recently occurred at a local Saemaeul Geumgo," and added, "The perpetrator was immediately suspended from duty upon recognizing the incident."

It continued, "A special investigation is underway to thoroughly examine the cause, circumstances, and amount involved in the incident," and "Based on the investigation results, we will compensate the full amount of the embezzled funds."

NACUFOK plans to use this incident as an opportunity to reassess and revamp the internal control system of Saemaeul Geumgo to prevent recurrence. A NACUFOK official stated, "We will inspect and enhance the internal control system and raise the ethical awareness of our executives and employees to become a trusted Saemaeul Geumgo."

Meanwhile, according to the police and financial authorities, employee A, who worked for over 30 years at the Songpa Central Saemaeul Geumgo branch, recently turned himself in to the police, confessing to embezzling funds from the credit union. The police report that A is suspected of secretly siphoning off approximately 4 billion KRW in deposits entrusted by customers who subscribed to financial products over 16 years, from 2005 to last year.