Banking Sector Faces Criticism as Re... > 경제기사 | economics

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[Alpha Biz= Reporter Kim Sangjin] Over the past eight years, the recovery rate for funds involved in fraud, embezzlement, and breach of trust cases within the banking sector has been alarmingly low, at just 9.1%.
According to data submitted by the Financial Supervisory Service FSS to Kim Hyun-jung, a member of the National Assembly’s Political Affairs Committee, there have been 190 reported incidents of fraud, misappropriation, and breach of trust in the banking sector from 2017 to August 2024. The total amount involved in these cases reached approximately 278.1 billion KRW.

Of the 190 incidents, 155 were cases of embezzlement or misappropriation, amounting to 168.8 billion KRW, while there were 35 breach of trust cases involving about 109.3 billion KRW. However, only 25.1 billion KRW, or 9.1% of the total amount lost, has been recovered so far.

Looking at individual banks, Gyeongnam Bank recorded the lowest recovery rate, having recovered only 0.1% 7.25 million KRW of the 60.1 billion KRW in losses. Similarly, KB Kookmin Bank recovered just 0.7% 43.11 million KRW of its 65.6 billion KRW in reported losses. NH Bank managed to recover 2.3% 85.39 million KRW of 36.6 billion KRW, while Woori Bank recovered 3.1% 287.9 million KRW from 92.7 billion KRW in losses.


In contrast, Hana Bank showed a relatively high recovery rate of 63.3%, managing to recover 56.75 billion KRW from 89.7 billion KRW in losses. Shinhan Bank also performed well, recovering 95.8% 132.42 million KRW of its reported losses of 13.8 billion KRW.

These figures have raised concerns about the effectiveness of internal controls and accountability measures within the banking sector, as fraud and embezzlement cases continue to pose significant risks.

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/ 알파경제 Kim SangJin Reporter