IBK Bank has come under scrutiny for failing to recognize a significant real estate loan fraud involving 18.2 billion won, despite receiving a police search warrant detailing the fraudulent methods and loan amounts. After reporting the incident to the Financial Supervisory Service (FSS), the bank approved an additional 1.9 billion won in related loans and concluded two internal checks with no irregularities found.
On September 9, Shin Dong-wook, a member of the National Assembly's Political Affairs Committee, revealed information obtained from the FSS and IBK Bank. The Incheon Police Agency sent a request for cooperation and a search warrant to IBK Bank on September 24 of last year.
The warrant included specific allegations of fraud, stating that developers and brokers had used nominal buyers to secure a loan of 965 million won through false contracts and payment documents.
IBK Bank received the warrant the following day but did not recognize it as a fraud case. It was not until a week later, on October 2, when the FSS requested confirmation regarding the search warrant that the bank acknowledged the incident. On October 10, the bank reported the fraud to the FSS, attributing it to external parties.
Subsequent internal checks failed to identify any warning signs. The bank's inspection department reviewed 16.489 billion won in related loans, examining credit assessments, collateral evaluations, documentation, and cash flows.
The review included loans secured by multiple units in the same building, third-party fund inflows, and connections between borrowers and related companies, yet both inspections concluded with no irregularities.
Moreover, after reporting the incident to authorities, the bank continued to approve related loans. On October 24, IBK Bank lent 1.9 billion won for facility funds secured by commercial real estate in Namyangju, Gyeonggi Province. This loan went through the headquarters approval process but later became part of the police investigation, resulting in it being classified as related to the fraud due to subsequent delinquencies.
The scale of the fraud has expanded as investigations progressed. Initially involving one borrower and one case amounting to 965 million won, the total has now risen to 12 borrowers and 14 cases totaling 18.221 billion won. The total amount of loans executed is 24.46 billion won, with 6.239 billion won recovered through external sales. The provision for bad debts stands at 1.098 billion won, and the final estimated loss has yet to be determined.
This incident is part of a broader scheme where developers and brokers allegedly used nominal buyers to obtain loans through false contracts and payment documents for commercial real estate in the metropolitan area, known as 'work loans.'
Similar financial incidents have occurred across banks and mutual finance sectors, totaling 136 cases and 1.091 trillion won. Among banks, IBK Bank reported the highest amount at 18.221 billion won, followed by Shinhan Bank at 17.34 billion won, Woori Bank at 9.87 billion won, and KB Kookmin Bank at 3.58 billion won.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.