IBK Industrial Bank of Korea lent 157 billion won to companies with suspected false tech ratings

IBK Industrial Bank of Korea has reportedly lent over 157.2 billion won to approximately 249 companies linked to suspected fraudulent technology credit rating (TCB) reports over the past seven years. According to data provided to National Assembly member Park Seong-hun, police are currently investigating 312 instances of suspected false evaluations submitted by rating agencies to the bank.

As of July this year, the outstanding loan balance related to these suspicious evaluations stands at 72.8 billion won. The bank noted that 17 of these companies have already defaulted, resulting in 4.7 billion won in losses. The largest portion of these loans, accounting for 67.4%, was issued to companies evaluated by eCredible.

Other involved rating agencies include Korea Rating & Data, SCI Evaluation Information, and NICE Information Service. Additionally, between 2022 and August of this year, the bank identified 214 cases of evaluation errors that required grade changes upon re-examination. IBK stated that similar types of damage have been confirmed across 15 different banks and that they are cooperating with ongoing investigations.