Additional discovery of embezzlement incidents exceeding 10.9 billion won since March
Overinflating real estate appraisal prices to issue loans beyond reasonable limits
Failure to verify forged official documents
Nonghyup Bank: “Criminal charges + strict disciplinary actions”
Nonghyup Bank headquarters in Seodaemun-gu, Seoul., ‘Following the 10.9 billion won excessive loan incident in March due to embezzlement of 53 billion won and 11 billion won respectively, financial malpractice of overinflating real estate appraisal prices to issue loans beyond the appropriate limit is being uncovered one after another. Currently, amidst regular inspections by the Financial Supervisory Service, Nonghyup Bank has emphasized prevention of recurrence.’,
, ‘On the 22nd, NH Nonghyup Bank announced financial malpractice incidents of 53 billion won and 11 billion won through its website. According to the announcement, between August 11, 2020, and January 26, 2023, at one Nonghyup Bank branch, a malpractice incident occurred where loans exceeding the appropriate limit were issued due to failure to verify forged official documents submitted by the debtor through high-priced appraisals. The audit results of Nonghyup Bank revealed that branch staff failed to properly verify the documents submitted by the debtor. The total amount of the incident was 53.44 billion won, showing an excess of 29.9 million won from the appropriate loan limit.’,
, ‘An embezzlement incident of 11 billion won was also discovered. Between July 16, 2018, and August 8 of the same year, a malpractice incident occurred at a branch where real estate prices were inflated to issue loans beyond the appropriate limit. The total loan amount was 11.225 billion won, with an estimated current loss of 15 million won.’,
, ‘An official from Nonghyup Bank explained, “After announcing the incidents in March, we became aware of similar types of financial malpractices occurring subsequently while conducting continuous audits.” ‘,
, ‘In March, a financial malpractice incident of 10.9 billion won was uncovered at Nonghyup Bank, where a staff member colluded with real estate brokers to fabricate documents and inflate collateral values to issue excessive loans. ‘,
, ‘Regarding the consecutive embezzlement incidents, Nonghyup Bank stated that it plans to take criminal action and implement strict disciplinary measures, including dismissal, for any illegal activities. The bank also emphasized that it will improve its business systems and provide staff with accident prevention education to prevent recurrence of similar cases.’,
, ‘Authorities are expected to closely examine similar cases as well. The Financial Supervisory Service has initiated a regular inspection of Nonghyup Bank since the 20th. The Financial Supervisory Service reported concerns about the internal control system at Nonghyup Bank branches managed by former Nonghyup Central Association staff as city/provincial branch managers, and plans to comprehensively diagnose vulnerable points in the management and governance structure of Nonghyup Financial Group and Nonghyup Bank through regular inspections.’,
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