Weak internal controls and concentrated power spark concerns over stability and regulatory effectiveness
The chairman of Woori Financial Group Inc. publicly apologized on Monday for the improper extension of loans totaling about $45 million (61.6 billion won) by Woori Bank to relatives of former chairman Son Tae-seung.
These loans, issued from April 2020 to Jan. 2024, were found to have bypassed standard screening processes. Of particular concern was $25.5 million (35 billion won) in loans granted without proper documentation, collateral verification or adherence to internal review processes, reflecting severe governance lapses within the institution.
The chairman of Woori Financial Group Inc. publicly apologized on Monday for the improper extension of loans totaling about $45 million (61.6 billion won) by Woori Bank to relatives of former chairman Son Tae-seung.
These loans, issued from April 2020 to Jan. 2024, were found to have bypassed standard screening processes. Of particular concern was $25.5 million (35 billion won) in loans granted without proper documentation, collateral verification or adherence to internal review processes, reflecting severe governance lapses within the institution.
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