Financial companies suffered a loss of more than 101 billion won (US$74.9 million) from acts of breach of trust over the past seven years, according to data on Saturday, amid criticism the companies lack internal control to prevent moral hazard cases.
A total of 84 unidentified executives and employees of financial companies siphoned off a combined 101.4 billion won from their companies' funds from 2017 to July of this year, according to data from the Financial Supervisory Service (FSS) submitted to Rep. Kang Min-kuk from the People Power Party.
Of the 101.4 billion won, only 37.1 percent was recovered.
By sector, the loss of banks accounted for the biggest share at 42.1 percent, followed by insurance firms at 25.9 percent, securities firms at 21.3 percent and card companies at 10.7 percent.
"Financial authorities should come up with strong measures to improve financial companies' internal control system, including holding CEOs to account, to respond to a series of embezzlement and breach of trust cases continuing to happen recently," Kang said.
Source: Yonhap News Agency