Financial Supervisory Service Re-examines Woori Bank Over 'Son Tae-seung's Relatives' Improper Loans'

The Financial Supervisory Service (FSS) has been revealed to be conducting a re-inspection of Woori Bank regarding allegations of improper loans to relatives of former Woori Financial Group Chairman Sohn Tae-seung.

Financial Supervisory Service building in Yeouido, Seoul. Photo by Younghan Heo younghan@

According to sources in the financial sector and financial authorities on the 26th, the FSS has been conducting an additional on-site inspection of Woori Bank since the 22nd.

It is reported that the focus will be on whether the current management deliberately omitted reporting to financial authorities despite being aware of the improper loan allegations.

An FSS official stated, "We sent additional personnel as there were further matters to verify," adding, "The inspection period may be extended depending on the situation."

Previously, the FSS conducted an on-site inspection from June to July following external reports that improper loans were made to relatives of former Chairman Sohn. In particular, the FSS holds concerns that the current management was already aware of the related matters but did not take appropriate actions such as reporting to authorities before the inspection.

According to the FSS, Woori Bank’s Credit Supervision Department reported the loan facts concerning former Chairman Sohn’s relatives to the current Woori Bank management between September and October last year. It is understood that Woori Financial Group’s management recognized the related facts by March at the latest this year.

Meanwhile, financial authorities are also expected to consider the need for institutional improvements regarding the tenure of financial group chairpersons.

At the plenary session of the National Assembly’s Political Affairs Committee held on the same day, Financial Services Commission Chairman Kim Byung-hwan responded to a question from Democratic Party lawmaker Kim Hyun-jung, who raised the need for governance improvements to limit long-term tenure of financial group chairpersons in light of the improper loan allegations against former Chairman Sohn, by saying, "We will look into whether there is a need for improvement."