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A foreign employee of South Korea-based Busan Bank stole approximately 1.48 billion won in customer funds and invested the money in crypto assets such as Bitcoin (BTC) and local media. report Aug. 1.
Employees reportedly stole funds between July 9th and July 25th.
South Korea looks to stricter control measures
South Korea is considering overhauling the Financial Companies Governance Act for theft, according to a report.
The country’s Financial Supervisory Service (FSS) said the embezzlement was caused by a lack of internal controls in eight key areas, including personnel management, self-store audits, and seal management.
Regulators also found that unusual transaction surveillance procedures and irregular overseas remittance situations were also implicated in major embezzlement cases.
According to the Financial Services Agency, overseas remittances by Shinhan Bank and Woori Bank exceeded 4 trillion won, with suspicious bank transactions totaling 7 trillion won.
The move by regulators to change corporate governance laws is not directly related to fraudulent money transfers or large-scale embezzlement, but it is believed that such changes could improve internal control practices.
The FSS recently announced that it would amend the law to improve management’s responsibility for internal controls.
In addition, a task force has been set up with the theme of strengthening internal controls to prevent accidents in the banking sector, and legal revisions are being considered.
Part of the expected reform is to force CEOs to comply with internal control standards. Currently, the law only imposes an obligation to set internal control standards.
Such amendments could hold financial institutions’ executives accountable and subject to sanctions in the event of financial mishaps.
Officials believe such laws will force executives to pay more attention to their internal affairs.
In addition, the Financial Services Agency is considering establishing an internal control department as part of its evaluation criteria for financial institutions. You can also increase the strength of the audit unit.
