Seoul, South Korea – Woori Bank has once again been embroiled in a significant financial fraud scandal, marking the fourth such incident this year. The latest case involves a fraudulent loan of 25 billion won ($19 million), which was facilitated by the submission of forged documents.   

The bank announced on [date] that an external party had submitted falsified paperwork to obtain a loan, inflating the value of a property used as collateral. The borrower had purchased a commercial property at a discounted price of 22 billion won but presented a false contract to the bank, indicating a higher purchase price of 36 billion won. Based on this inflated value, they were able to secure a 25 billion won facility loan.   

Woori Bank stated that it discovered the fraud after receiving a tip about the existence of a secondary contract. The bank has filed a criminal complaint against the borrower and is currently pursuing legal action to recover the loan. A bank official explained, "While the fraudulent loan amount is 25 billion won, the actual loss is expected to be minimal due to the 33 billion won collateral value."   

This latest incident comes on the heels of three other significant financial scandals at Woori Bank this year. In September, the bank reported a 55.59 billion won fraud involving forged documents. In June, a 100 billion won embezzlement case was uncovered at a branch in Gyeongnam province, leading to the replacement of the chief compliance officer. Additionally, in August, the bank was criticized for failing to disclose a 165 billion won loan scandal involving a former chairman's relatives until late August.

The repeated occurrence of these financial scandals has raised serious concerns about Woori Bank's internal controls and risk management practices. Financial regulators are likely to intensify their scrutiny of the bank's operations to prevent future incidents and ensure the protection of depositors.

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