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Photo = Industrial Bank of Korea (IBK) |
[Alpha Biz= Paul Lee] Prosecutors conducted a raid on the headquarters of the state-run Industrial Bank of Korea (IBK) on Tuesday following the Financial Supervisory Service’s (FSS) discovery of ₩88.2 billion (approximately $64 million) in fraudulent loans.
The Seoul Central District Prosecutors’ Office’s Anti-Corruption Investigation Division 1, led by Prosecutor Lee Jun-dong, announced that they were executing search and seizure operations at IBK’s headquarters, several regional centers and branches in Seoul, and the residences of loan officers involved in the case.
IBK had previously disclosed in January that a financial fraud case amounting to ₩23.95 billion had been detected, marking one of the largest financial scandals at the bank in over a decade.
Subsequently, on March 25, the FSS revealed that it had uncovered ₩88.2 billion in fraudulent loans during an on-site inspection of IBK. Among this, ₩78.5 billion was allegedly issued through collusion between a retired IBK employee and their spouse, who was still employed at the bank, along with other former colleagues. The FSS also accused IBK’s headquarters of attempting to conceal the scandal.
Before making its findings public, the FSS referred the case to prosecutors, prompting a March 17 raid on over 20 locations, including offices of loan officers and related companies in Seoul and Incheon.
The prosecution is now investigating whether IBK’s top management was complicit in the fraudulent loan scheme and whether employees involved in the case deliberately destroyed evidence during the FSS probe.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
