IBK Employees Attend Warrant Review Over 80 Billion KRW Improper Loan Allegations... Remain Silent

Current and former employees of IBK Industrial Bank of Korea, who are suspected of involvement in improper loans totaling around 80 billion KRW, are now facing the possibility of arrest.

Employee of Industrial Bank of Korea suspected of improper loan attending the warrant hearing. Photo by Yonhap News

On April 28, starting at 10:00 a.m., Judge Jeong Jaeuk, who is in charge of warrants at the Seoul Central District Court, is conducting a pretrial detention hearing (warrant review) for IBK employee Cho, who is under suspicion of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).

Upon arriving at the court for the detention review, Cho did not respond to reporters' questions such as "Do you admit to the charges?" and "What did you receive in exchange for the improper loans?" and proceeded directly to the courtroom. The warrant review for former employee Kim, for whom a detention warrant has also been requested, is scheduled for 2:00 p.m. the same day.

Previously, the Financial Supervisory Service requested a prosecution investigation, stating that improper loans amounting to 88.2 billion KRW, involving current and former IBK employees, their spouses, colleagues who joined the bank at the same time, private social groups, and business partners, had been uncovered. Kim, a former IBK employee, was found to have operated a real estate agency and a judicial scrivener's office under borrowed names. From June 2017 over a period of seven years, Kim, in collusion with or with the assistance of his spouse, who worked as a loan examiner at the review center, and 28 other employees with whom he had personal ties, received improper loans totaling 78.5 billion KRW.

During the investigation, prosecutors also uncovered evidence that current employee Cho received money or valuables from individual A in exchange for providing loans, which led to the request for a detention warrant for Cho as well.

On March 17, prosecutors conducted searches and seizures at around 20 offices in Seoul, Incheon, and other locations connected to current and former IBK employees, securing loan review documents and related materials. On April 1, in connection with the illegal loan allegations, prosecutors also searched IBK's headquarters in Jung-gu, Seoul, certain regional centers and branches in Seoul, and the residences of loan officers.