Japanese Credit Union Executives, Employees Accused of Embezzling $8.9 Million in Customer Deposits, Filing False Reports

Uri Shinkumi Bank, a Japanese credit union founded and operated by individuals of South Korean descent in Sapporo, Hokkaido, is facing serious allegations of financial misconduct. Reports indicate that a former vice chairman and four employees illicitly siphoned 1.4 billion yen (approximately $8.9 million USD) from customer deposits over a period of ten years, ceasing the practice only in 2013. Furthermore, these individuals allegedly created fake accounts under assumed names to conceal their actions from the Financial Services Agency, submitting falsified reports to the authorities.

The scandal has led to significant repercussions within the bank. The bank's chairman stepped down on June 12. In a press conference, current vice chairman Kenichi Takahashi apologized for the severe breach of customer trust and pledged to hold both current and former management teams accountable. The bank has reportedly compensated all affected customers for their losses.

In response to the misconduct, Japan's Financial Services Agency has imposed a penalty on Uri Shinkumi Bank. Starting July 14, the bank will be prohibited from offering financing and deposit services to new customers for approximately one month. The agency also mandated that the bank implement measures to prevent similar incidents from occurring in the future.

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We are deeply sorry for this situation that has severely damaged customer trust.