Authorities launch investigation into embezzlement at BNK Kyongnam Bank

A signboard for BNK Kyongnam Bank in Seoul on Wednesday. [YONHAP]

Financial authorities launched an on-site inspection for a 56.2 billion won ($44 million) embezzlement case at BNK Kyongnam Bank, the Financial Supervisory Service (FSS) said on Wednesday.

The suspect, an employee at the bank, embezzled 56.2 billion won over the past 15 years from 2007 by fabricating loan documents and using family accounts. The embezzled funds included the repayment of project financing loans.

BNK Kyongnam Bank filed a complaint against the employee with the prosecution, which raided the bank on Wednesday.

The FSS is currently identifying additional funds that could have been embezzled and is inspecting the bank's internal control system. FSS said it increased the size of its inspection workforce for BNK Kyongnam Bank, headquartered in Changwon, South Gyeongsang.

Financial authorities will take “strict measures” against bank executives for failing to properly monitor and control the internal system.

The employee at the bank worked on project financing from December 2007 through April 2023.

Last year, an employee at Woori Bank was found to have embezzled more than 70 billion won.

BY JIN MIN-JI [jin.minji@joongang.co.kr]