At NongHyup Bank, Half of Financial Incidents Caused by Employee Breach of Trust, Embezzlement, or Fraud

Improper Loans Used for Coin and Stock Investments... Incident Amount Totals 29.3 Billion Won
Geum Moonju: "Discipline Has Collapsed... Urgent Measures Needed"

Geum Moonju, member of the Democratic Party of Korea.

Concerns are mounting as it has been revealed that financial incidents caused by internal employees at NongHyup Bank, one of the country’s major financial institutions, have reached a serious level. Of the 10 loan-related financial incidents that occurred from last year through August of this year, as many as five were found to be due to embezzlement, breach of trust, or fraud by employees, with the total amount involved reaching 29.3 billion won.

According to data titled "Loan-Related Financial Incidents at NongHyup Bank from 2024 to August 2025," submitted by Geum Moonju, a member of the Democratic Party of Korea (representing Goheung, Boseong, Jangheung, and Gangjin in South Jeolla Province), the types of incidents caused by employees included three cases of breach of trust, one case of embezzlement, and one case of fraud.

Notably, even in a case reported to the Financial Supervisory Service as "fraud by an external party," there were indications of deep involvement by a NongHyup Bank employee. According to an internal audit report obtained by Assemblyman Geum, a credit team manager at one branch repeatedly requested and canceled property appraisals 44 times until a specific appraisal agency was selected, in order to inflate the appraised value during a real estate loan process that used dual sales contracts.

During this process, a loan consultant acting as a broker executed 98 loans totaling 27.5 billion won, and the amount of excessive loans resulting from the inflated appraisals was found to be 7.6 billion won. The individuals involved are currently under investigation by the Seoul Central District Prosecutors’ Office, and further repercussions are expected.

There was also a case where an employee exploited the bank’s system to cover personal investment losses. One employee, after losing 558 million won in coin and stock investments between November 2018 and September 2024, forged a real estate lease contract under his mother’s name to obtain an improper loan of 85 million won. The loan was used to cover personal investment losses, and it was even revealed that the employee engaged in coin and stock trading during work hours, highlighting the severity of the breakdown in internal discipline.

Assemblyman Geum criticized, "The lack of discipline among NongHyup Bank employees has gone too far. How can farmers and financial consumers trust such a bank with their money?"

He also urged, "Thoroughly analyze all financial incidents, including those caused by employees, that have occurred during this period, and promptly establish a 'zero financial incident strategy' at the NongHyup Bank level."