Bank Loans Go to Staff

Mortgages issued by banks are overwhelmingly going to bank officials and staff instead of the intended general public, according to a report handed over to the National Assembly on October 16.
The Banking Supervisory Authority presented data on the 'Loan Situation on Bank Officials' at the request of assemblywoman Kwon Young Ja of the opposition Grand National Party; it reveals that, as of March 1998, Cho Heung, Hanil, Korea First, and Hanmi Bank lent out 90% of all housing loans to their company staff members, not to their general customers.
Out of 21 banks, 14 handed over more than 50% of their mortgages to their staff members.
In Hanmi Bank's case, out of 9 million dollars in housing loans, only 1.5% went to general customers while 98.5% was lent to their staff members.
Adding insult to injury most of these banks are charging only a 1% interest rate for the loans, much lower than general rate of 10 to 16%.
Kwon was flabbergasted, 'The banks are stingy to general people when ignoring their public consciousness.'