Suspected cases of 'Kkeokgi' total 150,009... KB Kookmin > IBK Industrial > Hana in order
By amount, IBK Industrial Bank is the largest with 5.3037 trillion KRW
Assemblyman Yudongsoo: "Strict supervision by financial authorities is necessary"
The so-called 'kkyeokgi,' a deeply rooted practice in the domestic banking sector, is still widespread.
According to data received by Assemblyman Yoo Dong-su of the National Assembly's Political Affairs Committee from the Financial Supervisory Service on the 2nd, suspected cases of 'kkyeokgi' at major domestic banks last year totaled 150,009 cases, amounting to 17.3152 trillion won. This is the largest amount in the past five years.
By bank, KB Kookmin Bank had the highest number of suspected 'kkyeokgi' cases in 2023 with 30,800 cases, followed by ▲IBK Industrial Bank of Korea with 22,985 cases ▲Hana Bank with 22,649 cases. In terms of amount, IBK Industrial Bank of Korea led with 5.3037 trillion won, followed by Hana Bank with 3.4434 trillion won, and Woori Bank with 1.8327 trillion won.
IBK Industrial Bank of Korea is a policy bank established to support small and medium-sized enterprises (SMEs). However, despite ongoing criticisms of the 'kkyeokgi' issue, it has recorded a large amount of suspected 'kkyeokgi' cases over several years, raising concerns that it may not be fulfilling its role.
In fact, IBK Industrial Bank of Korea recorded the highest amount of suspected 'kkyeokgi' transactions every year from 2019 to 2023. Notably, the bank accounted for a significant portion of the total suspected 'kkyeokgi' transaction amount among all banks, with 36% in 2021, 29% in 2022, and 31% in 2023.
Furthermore, while the number of suspected 'kkyeokgi' cases decreased in 2023 compared to 2022, the amount increased, and suspected cases involving individual customers also rose, raising concerns that the banks' 'kkyeokgi' practices are becoming more sophisticated and expanding.
Assemblyman Yoo pointed out, "Despite being criticized multiple times during national audits, IBK Industrial Bank of Korea has not been able to shed the dishonor of being number one in 'kkyeokgi' for years. The bank, which should be a partner to SMEs, is instead causing them distress."
He added, "This indicates that not only the banks but also the financial authorities have not made substantial improvements. A more fundamental solution and strict supervision by the financial authorities are urgently needed to resolve this issue."
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