IBK hit with 4.8 billion won fraud tied to commercial property pre-sales

Industrial Bank of Korea disclosed a financial fraud incident linked to a commercial property pre-sale scheme carried out by an outside party.

The bank said Monday it had reported a financial incident involving 4.785 billion won (about $3.12 million) in fraud perpetrated by an external actor. The expected loss amount has not yet been determined.

The incident occurred between May and December 2024 and came to light after investigators requested documents from the bank.

Industrial Bank of Korea is currently verifying the facts surrounding the related loans and is expected to take follow-up action depending on the outcome of the investigation.

"This was a case in which fraudsters inflated commercial property pre-sale prices above appraised values to obtain larger loans," a bank official said. "The case is currently under investigation by the authorities."