Search

NEWS
RETAIL BANKING | Cesar Tordesillas, Korea
Published: 07 May 12
723 views


Suspended Korean savings banks raided over alleged irregularities

Prosecutors have raided four savings banks to investigate alleged irregularities that led to their suspension a day earlier.

The head offices of Solomon Savings Bank, Mirae Savings Bank, Korea Savings Bank and Hanju Savings Bank, as well as the homes of each bank's executives, were raided.

The officialsd announced that more than 30 locations, including the banks' key branch offices in Seoul, are expected to be searched as part of the investigation.

South Korea's financial regulators suspended the banks' operations for their failure to meet the capital adequacy ratios recommended by the Bank for International Settlements standards.

The financial institutions are suspected of giving out illegal loans, while their top shareholders and management are suspected of embezzlement and bribery.

The raids are aimed at securing documents, computer hard drives and other evidence that could support the allegations, the officials said.

Major shareholders and executives of the suspended savings banks have already been banned from leaving the country.

 Later Monday, prosecutors said they sought an arrest warrant for Kim Chan-kyong, chief executive of Mirae Savings Bank, on suspicion he tried to sneak out of the country after embezzling 13 billion won or US$11.3 million in company funds. He was caught by the Coast Guard last Thursday while attempting to leave for China by boat.

For more, click here.



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: banking irregularities, Korean savings banks, suspended savings banks, bank raids, Solomon Savings Bank, Mirae Savings Bank, Korea Savings Bank,Hanju Savings Bank

LATEST RETAIL BANKING JOBS »
  • No jobs posted on this category.
    PRINT ISSUE »

    Subscribe Now
    Chinese banks to suffer from thinner NIM as the central bank’s rate cuts take effect

    4 views

    Banks urged to make digital services accessible as non-bank entrants step up

    6 views

    In Asian cash management, customisation is now king

    11 views

    MOST READ EXCLUSIVES

    BNP Paribas Wealth Management Singapore's new CEO eyes rapid development of digital solutions

    BNP Paribas Wealth Management Singapore\'s new CEO eyes rapid development of digital solutions

    Ernest Leung plans to invest more in technology.

    by STAFF REPORTER
    13 May 2015 | 647 views
     
    close Don't Show Again

    STAY INFORMED! Get our free weekly newsletter