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Photo = NH Nonghyup Bank |
[Alpha Biz= Paul Lee] SEOUL, April 22, 2025 – NH NongHyup Bank has disclosed a large-scale financial fraud incident involving an external loan consultant who issued over ₩20 billion (approx. USD 15 million) in excessive mortgage loans.
According to a public filing on April 4, the bank revealed that its internal audit had uncovered a financial misconduct case in which an external mortgage loan consultant facilitated ₩20.49 billion worth of improper housing loans. These consultants operate outside the bank, similar to credit card agents, and serve as intermediaries between borrowers and the bank. Notably, no internal bank employees were involved in the incident.
The fraudulent activity reportedly occurred over a period from February 10, 2022, to April 25, 2023. The consultant allegedly inflated the appraised value of multi-unit residential properties to secure larger mortgage loans. NH NongHyup Bank explained that the consultant exploited a system loophole, where in the absence of an official appraisal, loan amounts could be based on the contractual property value instead.
Although the exact loss has not yet been determined, borrowers are currently repaying their loans on schedule, and the bank believes that loan recovery is feasible based on the collateral value of the properties involved.
The bank has stated its intention to file a criminal complaint against the consultant responsible for orchestrating the fraudulent activity.
Let me know if you'd like this adapted for a press release format or translated into Korean.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
