Mistakes multiplying at KB Kookmin Bank, report shows

KB Kookmin Bank said recently an inspection of 881 of its branches found 9,616 occasions the employees had changed the terms of loan contracts without first consulting with borrowers to make sure they agreed to the revisions.

The inspection comes after the bank has been taking flak for taking similar liberties with the loan contract of a customer surnamed Lee, which involved one of its staff authorizing a knowingly forged signature at the end of July. Lee filed a complaint to the Financial Supervisory Service (FSS) and KB responded by issuing a public apology.

The FSS said it has examined Kookmin’s inspection report and requested other banks to follow suit.

Kookmin Bank said it discovered 7,509 cases where the loan period had been altered, 1,954 cases where the fixed interest rate was changed, 147 cases where the size of the loan was doctored, and six cases where the name of the borrower was changed.

But the bank added that borrowers had later been notified of the changes and had not sustained any financial losses because of them.