Prosecutors Indict Former IBK Executive for Detention on Charges of Receiving 100 Million Won in Bribes for Branch Opening

Received Over 100 Million Won in Apartment Renovation, Golf, and Entertainment
Pushed Ahead with Branch Opening Despite Opposition from Bank Staff

Prosecutors have indicted a former executive of IBK Industrial Bank of Korea on charges of receiving bribes worth approximately 100 million won in exchange for opening a bank branch, and have placed him on trial while in detention.

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Kang Jinhyung

The First Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office (headed by Chief Prosecutor Lee Heechan) announced on the 19th that former IBK Deputy President, identified as A, has been indicted and detained on charges of post-employment bribery and bribery. The alleged bribe-giver, identified as B, has been indicted without detention.

A is accused of receiving apartment interior renovation expenses totaling approximately 110 million won, as well as golf and meal entertainment worth about 1.7 million won, from B, a real estate developer and former IBK employee, in exchange for facilitating the opening of an IBK branch in a newly constructed building in an industrial complex in Incheon between 2021 and 2022.

At the time, despite opposition from relevant working-level staff and committee members regarding the opening of the branch in the area, A reportedly pushed ahead with the decision.

B was previously indicted and detained in July on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes in connection with an improper loan case at IBK worth approximately 35 billion won. He has now been additionally indicted in this case.

Earlier, the Financial Supervisory Service requested a prosecutorial investigation after uncovering hundreds of billions of won in improper loans involving current and former IBK employees, their spouses, colleagues who joined the bank together, private gatherings, and business partners. In July, prosecutors indicted a total of nine individuals, including B, the head of IBK's credit review center, branch managers, and other current and former employees.