IBK suspends branch head for receiving money

26-Sep-2020 Intellasia | KoreaTimes | 6:02 AM Print This Post

The state-run Industrial Bank of Korea (IBK) is in the hot seat after a series of misconduct incidents involving its employees. In the latest case, a branch head was found to have received tens of millions of won from a customer in exchange for providing convenience in services.

According to the bank’s inspection records from Rep. Yun Chang-hyun of the opposition People Power Party, the head of a branch in North Gyeongsang Province who served in the position through June was suspended for three months after the bank found he had received around 20 million won from a customer.

The money was sent to the branch head’s IBK account and used for personal purposes. IBK said it looked into the case after a tip-off and that the suspension was imposed on August 31.

This is not the first time an IBK staff member has engaged in misconduct.

Last month, IBK found that an employee of a business branch in Hwaseong, Gyeonggi Province, illicitly secured 7.6 billion won in loans for himself through family members to buy 29 properties for speculative purposes over the past years. He bought 18 condominiums, nine studio apartments and two other properties and it is estimated he made 5 to 6 billion won from the loans based on the difference in the buying and selling prices of the properties. The employee was dismissed earlier this month.

Last year, IBK also found that a working-level employee of a bank branch had terminated the savings accounts of several customers and embezzled billions of won from December 2018 to April last year. The funds were used to invest in virtual currency and to pay back loans.

In another case, a low-level employee of a business branch was found last year to have terminated some customers’ savings accounts from January through March last year, and taken several million won.

In both cases, the bank initiated inspections after customers raised suspicions.

According to the report from Rep. Yun’s office, IBK conducted 180 internal inspections this year, and imposed punitive measures in five cases. In 2019, the bank inspected 337 cases and punished employees for 10 of them.

Regarding the latest case, an IBK official said, “We monitor systems around the clock for suspicious activities. The bank is also running a programme under which personnel from the headquarters are sent to branches to instruct employees on IBK’s code of ethics.”



Category: Korea

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