Revealed in the Financial Supervisory Service Regular Audit
It has been revealed that KB Kookmin Bank experienced three financial incidents totaling 14.7 billion KRW in the first half of this year (March to June), including breach of trust in the course of duty and fraud. These were discovered during a regular inspection by the Financial Supervisory Service, with the expected loss amounting to approximately 11.7 billion KRW.
According to the financial sector on the 11th, Kookmin Bank announced yesterday that two cases of breach of trust in the course of duty and one case of fraud had occurred. The amounts involved in the financial incidents were 4.1 billion KRW and 9.24851 billion KRW for the breach of trust cases, and 1.4 billion KRW for the fraud case.
All these financial incidents were uncovered during the Financial Supervisory Service's regular inspection process.
The two breach of trust cases reportedly occurred during the handling of loans related to commercial properties. Loans were issued to stakeholders of the developer, who were not commercial property buyers.
The fraud was committed by an external party, with the applicant for the commercial property loan submitting false documents to the bank.
KB Kookmin Bank plans to take personnel actions against the related employees and file criminal complaints.
A Kookmin Bank official stated, "We will strengthen education for executives and employees to prevent recurrence of financial incidents, improve processes and related systems, and make every effort to restore customer trust."
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