IBK Bank's Chinese branch is embroiled in a financial scandal involving approximately 80 billion won, raising concerns about the bank's inadequate management of online loans. The bank claims it fell victim to a so-called 'external fraud' during the process of handling customer principal and interest repayments through an external platform. However, it appears that the bank only became aware of the incident after a rise in complaints and unprocessed payments.
On August 24, Shin Dong-wook, a member of the National Assembly's Political Affairs Committee, revealed information obtained from the Financial Supervisory Service and IBK Bank. According to the data, IBK Bank's Chinese branch had contracted with a local non-bank financial institution, Company A, to manage online loans. Company A processed borrower recruitment and repayment tasks through an online loan platform, Company B. Although IBK Bank directly disbursed the loans, it used a post-settlement method where repayments made by borrowers were funneled through accounts designated by Company B.
The financial incident occurred when Company B exploited this repayment structure. The company solicited early repayments or interest reductions from customers, directing them to deposit money into the designated accounts. Subsequently, it sent false information to financial institutions, indicating that repayments had been made, while no actual funds were transferred. As a result, customers who repaid their loans were incorrectly classified as delinquent, and the financial institution did not receive the repayments.
Particularly concerning is that it took IBK Bank several months to recognize the incident, raising questions about the effectiveness of its internal control systems.
According to a report from the Financial Supervisory Service, the incident spanned from December 1 of last year to June 29 of this year. However, IBK Bank only became aware of the issue on June 24, six months after it began. This realization came only after it became evident that no actual deposits had been made and customer complaints increased. Following this, on June 25, the bank visited the offices of the platform and the collateral company to assess the situation, and on June 26, it verbally reported the matter to local financial authorities.
The first report to the bank's headquarters was made on June 30, and the initial phone report to the Financial Supervisory Service occurred on July 1. A written report was submitted on July 10.
Despite the significant scale of the incident, the exact amount of damages and losses has yet to be determined. IBK Bank disclosed on July 15 that the scale of the financial incident was 83.376 billion won. However, two months after recognizing the incident, the bank still has not accurately assessed the actual amount involved, recovery amounts, or estimated losses.
In response, IBK Bank stated, "This matter is currently under investigation by overseas authorities, and we plan to cooperate closely with local agencies to pursue necessary legal actions." The bank also mentioned that it is continuously reviewing and enhancing its internal control procedures.
* This article has been translated by AI.
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