Prosecutors Indict Current and Former Industrial Bank of Korea Employees for 74 Billion Won Illegal Loan Scheme

Used Connections to Secure 74.4 Billion Won Loan for Building Construction
Prosecutors: "Collusion Through Bribery Led to Systematic Illegal Lending"

Former and current executives and employees of Industrial Bank of Korea have been indicted for approving illegal loans worth 74.4 billion won and accepting bribes in exchange for allowing the bank's branches to be established in certain locations.

On January 12, the Seoul Central District Prosecutors’ Office’s Anti-Corruption Investigation Division 1 (headed by Prosecutor Lee Heechan) announced that it had indicted 10 current and former employees of Industrial Bank of Korea, including former employees A and B and the current head of the Credit Review Center, C. A, B, and C have been indicted while in detention.

According to prosecutors, A, a former Industrial Bank of Korea employee who is now a real estate developer, is accused of securing illegal loans totaling 74.4 billion won by leveraging personal connections with current and former employees, and using the funds to construct a building named after himself. B, a former vice president of Industrial Bank of Korea, is accused of receiving approximately 113.3 million won in exchange for facilitating the establishment of an Industrial Bank of Korea branch in A's building. C, the head of the Credit Review Center, is accused of approving illegal loans and receiving bribes in return.

Prosecutors determined that the employees of Industrial Bank of Korea colluded through personal relationships and bribery, engaging in organized illegal loan approvals and bribery by conducting lax loan reviews and approving excessive or otherwise unqualified loans.

Previously, the Financial Supervisory Service requested a prosecutorial investigation early last year, citing the occurrence of large-scale illegal loans at Industrial Bank of Korea.