South Korea's financial watchdog, the Financial Supervisory Service (FSS), plans to implement stricter oversight on banks and financial firms after continued inappropriate loan extensions, Yonhap News reported Tuesday.
The regulator revealed Industrial Bank of Korea (KRX:024110) issued 86.2 billion won in improper loans--far exceeding its earlier estimate--to ex-employees and their families. Similar irregularities were noted at Woori Financial Group's (KRX:316140) Woori Bank, KB, and NH Nonghyup, which totaled 387 billion won, the report said.
Shares of Industrial Bank of Korea fell nearly 1% in recent trade on Wednesday.
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