KB Kookmin Bank accounts for 90% of major South Korean bank loan scandals

Data analyzed by National Assembly member Kim Hyung-yeon reveals that between 2022 and July 2024, 134 loan-related financial accidents occurred across South Korea’s five major banks, totaling over 44.9 billion won. KB Kookmin Bank was responsible for 124 of these incidents, accounting for 92.5% of the total cases and 90.5% of the total value, amounting to approximately 40.6 billion won.

The accidents involved both corporate and individual loans. At KB Kookmin Bank, investigations uncovered instances where employees actively participated in fraudulent activities to meet performance targets. This included knowingly approving loans based on forged income documents, directly altering documents, and using false sales or lease contracts to secure loans for properties that were unsold or had invalid rental agreements.

Other banks reported fewer incidents: Hana Bank recorded 5 cases (2.48 billion won), Shinhan Bank recorded 4 cases (1.46 billion won), and Woori Bank recorded 1 case (334 million won). NH Nonghyup Bank reported no incidents during this period. KB Kookmin Bank has pledged to strengthen internal controls through automated document collection and enhanced monitoring, though critics argue that systemic issues regarding performance-based incentives must also be addressed.