Financial Accident
As major commercial banks had more than 100 financial accidents last year, Shinhan Bank had the most number of the accidents.
According to the Korea Federation of Banks and banking industry sources on June 8, 103 financial accidents happened in six banks – KB Kookmin Bank, Industrial Bank of Korea (IBK), NH Nonghyup Bank, Shinhan Bank, Woori Bank and KEB Hana Bank – last year. The total amount of financial accidents reached 10.63 billion won (US$9.11 million).
Shinhan Bank had the most number of the accidents last year. There were 24 accidents – three accidents of embezzlement and misuse each, and nine accidents of violation of the real-name financial transaction system and private cash loans each – worth 2.29 billion won (US$1.97 million).
Shinhan Bank President Cho Yong-byung asked its employees to strengthen the internal control system last year. He said, “We have come up with various systems and processes in order to prevent financial accidents through a healthy sense of ethics and thorough internal control systems,” establishing the “internal control team” in the corporate and retail sectors, respectively.
The six commercial banks had 38 accidents and 23 accidents of the violation of the real-name financial transaction system and the private cash loans which disturb the financial order. Shinhan Bank had the most violations of the real-name financial transaction system with 9 cases, followed by KB Kookmin Bank with 8 cases.