IBK Bank Reports 83.4 Billion Won Financial Incident at Overseas Subsidiary... Platform Agency Diverts Loan Repayments

Agency Diverts Customer Loan Repayments
to Separate Account
Local Authorities Conducting Ongoing Investigation

A financial incident totaling approximately 83.4 billion won occurred at an overseas subsidiary of IBK Bank. It has been found that an external company operating a non-face-to-face micro-loan platform diverted the principal and interest repayments made by customers into a separate account.

On July 16, IBK Bank disclosed that a financial incident involving suspected fraud by an external party took place at its overseas subsidiary, totaling about 83,376 million won. The disclosed amount reflects the situation as of when the incident was identified, and the final expected loss has not yet been determined.

According to IBK Bank, the subsidiary in question had signed an agreement with a local financial firm for non-face-to-face micro-loan operations. The local financial firm subsequently entered into a separate contract with a platform agency company for system management. Afterward, the platform agency company improperly diverted the repaid loan principal and interest from customers into an account controlled by the agency, instead of the proper account. IBK Bank reports that the signs of suspicious transactions were detected while monitoring outstanding non-face-to-face loans at the overseas subsidiary.

Currently, local investigative authorities are conducting an investigation into the matter. IBK Bank stated that, as the investigation is still in its early stages, it is difficult to disclose further details at this time. An IBK Bank official said, "We are closely monitoring the progress of the investigation," adding, "We plan to cooperate closely with local authorities and take all necessary legal action."

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