'Embezzlement and Breach of Trust' in Banking Sector, Financial Accident Recovery Rate Only 9%

190 Cases of Embezzlement, Misappropriation, and Breach of Trust Since 2017
Recovery Amount 25.1 Billion KRW out of 278.1 Billion KRW in Losses
Rep. Kim Hyunjung: "Financial Authorities Should Provide Guidelines for Recovery"

Despite frequent financial accidents in the banking sector, the recovery rate of the accident amounts was revealed to be only 9.1%.

According to data on financial accidents and recovery rates in the banking sector submitted by the Financial Supervisory Service to Kim Hyun-jung, a member of the National Assembly's Political Affairs Committee, from 2017 to August 2024, there were 190 cases of embezzlement, misappropriation, and breach of trust in the banking sector, with the total accident amount reaching 278.1468 billion KRW.

Among the 190 financial accident cases in the banking sector, 155 were embezzlement and misappropriation cases amounting to 168.8369 billion KRW, and 35 were breach of trust cases amounting to 109.399 billion KRW. Of these, the recovered amount was only 25.1847 billion KRW, which is 9.1% of the total accident amount.

By bank, Kookmin Bank recovered only 0.7% of the accident amount of 65.5847 billion KRW, amounting to 431.1 million KRW, showing the lowest recovery rate. NongHyup Bank recovered 2.3% of 36.6504 billion KRW, amounting to 853.9 million KRW, and Woori Bank recovered 3.1% of 92.724 billion KRW, amounting to 2.879 billion KRW. On the other hand, Hana Bank recovered 63.3% of 8.965 billion KRW, amounting to 5.675 billion KRW, and Shinhan Bank recovered 95.8% of 1.3816 billion KRW, amounting to 1.3242 billion KRW.

Additionally, Gyeongnam Bank, despite having a large accident amount of 60.1583 billion KRW, had a recovery rate of only 0.1%, amounting to 72.5 million KRW. Iam Bank recovered 58.7% of 13.6988 billion KRW, amounting to 8.0431 billion KRW.

Assembly member Kim Hyun-jung stated, "The low recovery rate compared to the enormous scale of financial accident amounts ultimately results in costs being passed on to financial consumers," adding, "While strong legal measures are necessary, financial authorities must also take strong initiative to encourage and manage the recovery of accident amounts and provide guidelines for recovery."

This content was produced with the assistance of AI translation services.