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🇰🇷 South Korea /Crime & Justice

Woori Bank reports 4 billion won financial incident amid discount sale fraud probe

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Under investigation
  • Woori Bank reported a financial incident involving approximately 4 billion won (US$2.8 million) due to a discount sale fraud.
  • An external party allegedly submitted false documents to secure loans, leading to the financial loss.
  • The bank is cooperating with an ongoing investigation and may pursue criminal charges based on the outcome.

Woori Bank has disclosed a significant financial incident amounting to approximately 4 billion won (US$2.8 million), stemming from a sophisticated discount sale fraud scheme. The bank stated that an external party perpetrated the fraud by submitting falsified documents to obtain loans.

The incident, which occurred between August 19 and August 30, 2024, involved the fraudulent acquisition of funds by presenting a facade of stable collateral value or sale prices. Woori Bank has classified the event as an external fraudulent act and is taking steps to recover the funds through the collateral associated with the loans.

This accident is a conventional type of discount sale fraud, not a new method.

— Woori Bank representativeThe representative clarified the nature of the fraud and assured that future loan reviews would be more rigorous.

An investigation into the matter is currently underway. Woori Bank indicated that it is considering filing criminal complaints and charges depending on the investigation's findings. A bank representative clarified that this is a known type of discount sale fraud, not a novel method, and assured that relevant loan officers would conduct more thorough reviews moving forward.

The bank plans to pursue the recovery of funds through the commercial property collateral that was established for the fraudulent loans. The ongoing investigation will determine the next steps, including potential legal action against those responsible.

Depending on the investigation results, we will review criminal charges and complaints.

— Woori Bank representativeThe bank indicated its intention to pursue legal action based on the ongoing investigation's outcome.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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