Recovery Rate Stagnates at 9.7%
Despite the Financial Supervisory Service's (FSS) announcement of countermeasures, embezzlement incidents have been occurring monthly within the domestic financial sector this year.
According to the 'Details of Employee Embezzlement Cases by Domestic Financial Sector' received on the 23rd from the FSS by Kang Min-guk, a member of the People Power Party, the total amount embezzled from 2018 to June this year was calculated to be 180.4274 billion KRW.
This year alone, embezzlement cases were reported every month: 2 cases in January (Shinhan Savings Bank 5 million KRW, Export-Import Bank 12 million KRW), 1 case in February (Yegaram Savings Bank 31.6 million KRW), 1 case in March (AIA Life Insurance 24 million KRW), 3 cases in April (Hana Bank 600 million KRW, NongHyup Bank 3.3 million KRW, Hana Bank 400,000 KRW), 2 cases in May (Shinhan Bank 32.2 million KRW, Korean Re 675 million KRW), and 2 cases in June (Hana Bank and NongHyup Bank 15 million KRW).
This tally does not include the recent embezzlement incident at Woori Bank involving approximately 10 billion KRW, so the actual embezzlement amount may be even higher. Woori Bank classified and reported the incident as fraud rather than embezzlement, stating that the employee involved is currently detained on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
By sector, banks accounted for the largest embezzlement amount at 153.328 billion KRW (85%, 115 employees), followed by savings banks at 16.4573 billion KRW (9.1%, 11 employees), securities at 6.061 billion KRW (3.4%, 12 employees), insurance at 4.32 billion KRW (2.4%, 39 employees), and cards at 261 million KRW (2 employees).
Among banks, Woori Bank had the highest embezzlement amount at 73.4912 billion KRW (12 employees). In savings banks, KB Savings Bank had the largest embezzlement amount at 7.7832 billion KRW (1 employee).
In non-life insurance, KB Non-Life Insurance recorded the highest embezzlement amount at 1.098 billion KRW (3 employees), while in life insurance, Samsung Life Insurance had the largest amount at 880 million KRW (3 employees). In the card sector, Woori Card had 251 million KRW (1 employee), and in securities, NH Securities had the largest embezzlement amount at 4.012 billion KRW (4 employees).
By year, embezzlement amounts sharply increased after 2021. The amounts were 5.6678 billion KRW in 2018, 8.4587 billion KRW in 2019, and 2.0829 billion KRW in 2020, then surged to 15.6946 billion KRW in 2021, 82.7562 billion KRW in 2022, and 64.267 billion KRW last year.
However, recovery rates have been low. Of the total 180.4274 billion KRW embezzled from 2018 to June this year, only 17.5466 billion KRW has been recovered, resulting in an overall recovery rate of just 9.7%. Notably, last year's recovery rate was 2.4%, the lowest since 2018.
Assemblyman Kang stated, "Embezzlement incidents are occurring monthly as if mocking the FSS's management and supervision," and urged, "Strong internal control reform measures must be established to hold not only CEOs but also financial holding company chairpersons accountable for management responsibilities when financial accidents occur, and the accountability structure must be strictly enforced, supervised, and supplemented."
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