KB Kookmin Bank Faces 13.6 Billion KRW Embezzlement Incident

A breach of trust incident involving approximately 13.6 billion KRW occurred at KB Kookmin Bank.

Financial authorities have begun on-site inspections of major distributors amid expectations of trillion-won losses in the first half of this year from equity-linked securities (ELS) based on the Hong Kong H-Index. The photo shows KB Kookmin Bank in Yeouido, Seoul, on the 8th. Photo by Jinhyung Kang aymsdream@

According to the financial sector on the 31st, KB Kookmin Bank announced that a financial accident amounting to 13.5629 billion KRW occurred due to breach of trust the previous day.

This financial accident took place from the end of April to the end of November last year and was discovered during a regular inspection by the Financial Supervisory Service. It is reported that loans related to commercial buildings were issued to stakeholders of the developer rather than the actual buyers.

The expected loss amount is currently undetermined, and the collateral amount is 10.715 billion KRW. KB Kookmin Bank plans to take personnel actions against the related employees and proceed with criminal charges.

Meanwhile, KB Kookmin Bank corrected the previously announced breach of trust accident amount on the 10th from 9.24851 billion KRW to 12.03251 billion KRW. The collateral amount was also corrected from 6.19632 billion KRW to 8.37678 billion KRW.