Special Inspection with Financial Supervisory Service and Korea Deposit Insurance Corporation from July 21
"One-Strike-Out" for Those Responsible for Accidents
Whistleblower Rewards Increased Up to 500 Million Won
The Ministry of the Interior and Safety will conduct a special inspection of Saemaeul Geumgo starting on July 21 to strengthen internal controls and eradicate the recent spate of financial accidents.
On July 15, the ministry announced that it would carry out this inspection in cooperation with the Saemaeul Geumgo Central Association, with support from the Financial Supervisory Service and the Korea Deposit Insurance Corporation.
First, by the end of September, a special inspection will be conducted on about 100 Saemaeul Geumgo branches that are considered at high risk for financial accidents. The inspection will focus on incidents such as embezzlement and breach of trust, as well as the current status of internal control operations. If financial accidents are detected during this inspection or during the Saemaeul Geumgo audit process, or if it is found that internal control managers or persons responsible have neglected their duties, strict disciplinary action will be taken.
The "one-strike-out" policy will be applied to those directly involved in financial accidents such as embezzlement, resulting in immediate dismissal. The ministry will also seek to raise the disciplinary standards for internal control managers and persons responsible who have neglected their duties.
The ministry will actively encourage the reporting and filing of complaints regarding financial accidents. It will strengthen publicity for various reporting channels, including the MG Safe Reporting Center, Red Whistle, and the anonymous bulletin board on the Saemaeul Geumgo website, to make it easier to report financial incidents. Incentives for whistleblowers will also be increased. The reward will be raised tenfold from the current 1% of the loss amount (up to 50 million won) to 10% of the loss amount (up to 500 million won).
The 13 regional headquarters of the Saemaeul Geumgo Central Association will conduct quarterly inspections of internal control operations at all branches nationwide and strengthen employee training. For branches found to have weak internal controls, staff from the central association will visit to provide on-site guidance, and the results will be used as evaluation indicators for the regional headquarters.
Han Soonki, Director General of Local Finance and Economy at the Ministry of the Interior and Safety, stated, "Saemaeul Geumgo, which is rooted in the local community, needs to maintain higher credibility and social responsibility than other financial institutions," adding, "Going forward, we will actively exercise our supervisory authority to eradicate financial accidents at Saemaeul Geumgo."
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