According to a report from the Financial Supervisory Service (FSS) submitted to Rep. Kang Min-kuk of the People Power Party, financial companies have suffered a loss of more than 101 billion won (US$74.9 million) due to cases of breach of trust in the last seven years. Of the total amount, only 37.1 percent has been recovered. Banks were the most affected sector, accounting for 42.1 percent of the loss, followed by insurance firms (25.9 percent), securities firms (21.3 percent) and card companies (10.7 percent).
Rep. Kang has called for stronger measures to improve the internal control system of financial companies, including holding CEOs accountable, in order to address the continuing cases of embezzlement and breach of trust.
An illustrated image depicting embezzlement (Yonhap)
nyway@yna.co.kr
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