SEOUL — Employees from various banks and financial firms have embezzled approximately 180 billion won ($122.21 million) over the past six years, with less than 10 percent of the stolen funds recovered, recent data reveals.
According to Yonhap News Agency, a total of 168 officials from South Korea's financial institutions collectively misappropriated 178.92 billion won between 2018 and 2023. The annual figures show a worrying escalation in embezzlement, starting from 5.67 billion won in 2018, peaking at 82.76 billion won in 2022, and slightly decreasing to 64.26 billion won in the following year. Despite efforts, only 17.45 billion won, or 9.8 percent of the total embezzled funds, has been successfully retrieved.
The substantial financial losses have sparked considerable damage to corporate profits and, consequentially, to customers. In response to the increasing incidents, the FSS implemented measures in 2022 aimed at strengthening internal controls within financial firms. However, critics argue these efforts are insufficient to curb the rising tide of embezzlement cases. This year alone, 11 officials have been implicated in embezzling a combined total of 1.51 billion won, with just 6.7 percent recovered so far.
The issue of embezzlement came to the forefront again earlier this month after a Woori Bank employee in his 30s was arrested for embezzling approximately 10 billion won by forging corporate documents. This incident has led to renewed calls for stricter regulations and oversight in the financial sector.
In light of these developments, the FSS is contemplating the introduction of new legislation that would hold CEOs of financial firms accountable for embezzlement and related crimes committed by their employees.