Thomas Daniels
A Woori Bank employee has been arrested for allegedly embezzling ₩18 billion (approximately $15 million USD) by falsifying loan documents and using the misappropriated funds to invest in cryptocurrencies.
The employee, responsible for managing corporate loans at a Woori Bank branch in Gimhae, South Korea, reportedly manipulated loan documents 35 times over a span of ten months, from July 2023 to May 2024. The fraudulent loans were issued under the names of 17 customers, comprising both individuals and companies.
Investigations attribute the embezzlement to “inadequate bank management and supervision,” highlighting issues such as staff processing urgent loan approvals without authorized oversight and the headquarters directing loan funds to branches instead of the borrowers’ accounts.
Prosecutors have frozen assets worth approximately $3.2 million, including deposits in cryptocurrency exchanges, banks, and loan firms, through seizure and preservation measures.
In response to increasing crypto-related financial crimes, South Korea’s Financial Supervisory Service (FSS) is developing a monitoring system to detect unusual crypto trading activities. The FSS has urged domestic trading platforms to share internal data to comply with new regulations effective July 19, enhancing transparency and oversight in the nation’s cryptocurrency market.
