Shinhan Bank extended loan terms for deceased customers

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Shinhan Bank extended loan terms for deceased customers

Shinhan Bank was found to have extended the period of loan contracts initially signed by dozens of its deceased customers, the Financial Supervisory Service confirmed yesterday.

The finding was revealed after the FSS conducted a general inspection of Shinhan Bank from Oct. 29 to Nov. 30 last year.

According to the FSS, the bank without due notice extended the loan contract terms of 26 deceased customers from January 2011 to October 2012 at 21 branches nationwide. Usually, when a bank extends the household loan contract period of a borrower, it needs to receive the borrower’s approval.

The bank was also found to have provided deposits to a third person even though the depositor did not visit the bank in person.

The FSS said that it imposed an 87.5 million won ($782,225) penalty on the bank.

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