[Asia Economy Reporter Buaeri] Over the past five years, the embezzlement amount by employees in the financial sector has reached 100 billion KRW, but the recovery rate remains at 11.6%.
According to data received on the 29th from the Financial Supervisory Service by Kang Ming-guk, a member of the National Assembly's Political Affairs Committee from the People Power Party, 174 employees embezzled funds in the financial sector from 2017 to May 2022, with the embezzlement amount totaling 109.1826 billion KRW.
The annual embezzlement amounts were 8.9887 billion KRW in 2017, 5.5729 billion KRW in 2018, 8.4737 billion KRW in 2019, 2.0828 billion KRW in 2020, 15.2658 billion KRW in 2021, and 68.7976 billion KRW up to mid-May 2022.
By sector, the number of employees who embezzled was highest in banks with 91 people, followed by insurance with 58, securities with 15, savings banks with 7, and card companies with 3.
By amount, banks had the largest embezzlement at 80.8341 billion KRW, followed by savings banks (14.6804 billion KRW), securities (8.696 billion KRW), insurance (4.716 billion KRW), and card companies (256 million KRW).
The bank with the highest number of embezzling employees was Hana Bank with 17 people; for insurance, Dongyang Life Insurance had 8; for savings banks, Cham Savings Bank had 2; and for securities, NH Investment & Securities had 4.
By embezzlement amount, Woori Bank was highest among banks with 63.377 billion KRW; KB Insurance led insurance with 1.203 billion KRW; Woori Card led card companies with 251 million KRW; KB Savings Bank led savings banks with 7.7832 billion KRW; and NH Investment & Securities led securities with 4.012 billion KRW.
However, the amount recovered from embezzlement in the financial sector was found to be low. Over the past five years, the recovered embezzlement amount in the financial sector was 12.7116 billion KRW, which is about 11.6% of the total.
The recovery rate of embezzlement amounts was lowest in savings banks at 5.7%, followed by banks at 8.4%, insurance at 23.2%, and securities at 43.2%.
Rep. Kang said, "The fact that the embezzlement amount confirmed over the past five years in the financial sector exceeds 100 billion KRW and that the scale of recent embezzlement is increasing shows the absence of functions in the Financial Services Commission and the Financial Supervisory Service," adding, "Based on the on-site inspection of the recent large-scale embezzlement incident at Woori Bank, proper financial supervision improvement measures must be prepared."
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