Market Chatter: South Korea's FSS to Strengthen Bank Supervision Amid Loan Irregularities

MT Newswires Live
2025/03/26

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.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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