[2026 Parliamentary Audit] IBK Bank President Jang Minyoung on opaque selection of military consolation fund organization: "I acknowledge procedural shortcomings"

Jang Minyoung, president of IBK Industrial Bank of Korea, acknowledged that there were procedural shortcomings in the selection of a public-interest organization to deliver consolation funds to military personnel and said the bank would improve its internal rules and procedures. However, she denied allegations that the organization had been selected because of its ties to a particular individual, saying there had been no improper solicitation or intent.

Jang Minyoung, president of the Industrial Bank of Korea, attends a parliamentary audit of the Financial Services Commission and other agencies at the National Assembly on Oct. 8, 2026. Photo by Yoon Dongju.

At a parliamentary audit by the National Assembly’s Political Affairs Committee on October 22, Jang responded to a question from Rep. Kim Jaeseop of the People Power Party, saying, "I acknowledge that there were shortcomings in the procedures and process for making the selection."

According to Rep. Kim, IBK supports military personnel by designating a public-interest organization to receive the consolation funds and deliver them to military units. The planned amount for this year's consolation funds is KRW 1.35 billion, and the organization responsible for delivering them receives a 5% fee.

Rep. Kim pointed out that IBK notified the Institute for Promotion of Education for Children of Military Personnel, with which it signed an agreement in May 2017, by phone that the existing agreement was ending, without sending an official notice. He also alleged that the selection of a new organization involved no separate public recruitment notice, application intake, evaluation form, list of evaluation panel members, scores for each organization, or evaluation committee meeting minutes.

Rep. Kim also questioned the eligibility of the newly selected organization. He noted that an organization previously headed by Kim Hyun-jong, former first deputy director of the National Security Office, was included among the final candidates on June 20 last year, even though its bylaws at the time did not include providing consolation to military units as an objective. According to Rep. Kim, that objective was added on August 7, and the organization was not registered until September 10, after signing an agreement with IBK on September 4.

Rep. Kim raised suspicions that IBK had selected an organization connected to figures in the defense sector in consideration of its bid to win the Nation Love Card project. In response, Jang said, "I can state unequivocally that there was absolutely no improper solicitation or improper intent whatsoever in the selection process."

Rep. Kim asked for the bank's cooperation, saying he would pursue a legal amendment to allow state-run banks to deliver consolation funds directly to military units. Jang said she strongly supported the intent of the proposed amendment and added, "We will revise our internal rules and processes to prevent this kind of controversy from arising."

This content was produced with the assistance of AI translation services.