Nonghyup followed by Kookmin Bank...100 billion won wrongful loan accident...inflated real estate prices

An employee at a branch of KB Kookmin Bank has been involved in an embezzlement case by inflating real estate collateral values to approve excessive loans.

According to the financial sector on the 13th, the A branch of KB Kookmin Bank in Anyang processed a total of 10.4 billion KRW in collateral loans for commercial space buyers in a knowledge industry center in the second half of last year.

However, an internal audit at KB Kookmin Bank revealed that these loans were based on the original sales prices rather than the actual discounted prices. The commercial spaces had been unsold for several years and were sold at lower prices than the original prices, but the collateral values were calculated based on the original prices, leading to excessive loans and embezzlement.

KB Kookmin Bank reported the findings to the Financial Supervisory Service (FSS) earlier this month, and the FSS has been conducting an on-site inspection since the 11th.

The employee responsible for these loans has been suspended from duty.

Earlier, on the 5th, NH Nonghyup Bank also disclosed a case of excessive loans amounting to 10.9 billion KRW, which is currently under investigation by the FSS.