The Seoul Regional Tax Office's Investigation Unit 4, known in business circles as the "grim reaper of the corporate world," has launched a special tax audit of KB Kookmin Bank after detecting suspected tax evasion.
About 30 investigators from Investigation Unit 4 entered KB Kookmin Bank's annex building in Yeongdeungpo-gu, Seoul, on Thursday morning to secure accounting records and other materials needed for the probe, according to financial industry sources.
Investigation Unit 4 handles unscheduled special tax audits targeting suspected corporate tax evasion — distinct from routine periodic audits — earning it the nickname "grim reaper of the corporate world."
The investigation is expected to run through the end of this year, though the specific grounds have not been confirmed. Earlier, in May, Investigation Unit 4 launched back-to-back special audits of Hana Financial, Hana Bank and Meritz Securities.
At the time, the financial industry took note that the audits came shortly after President Lee Jae-myung remarked that he felt financial institutions were "far too weak in their public-interest obligations," prompting speculation that the scrutiny could spread across the entire sector.
With Investigation Unit 4 now targeting KB Kookmin Bank just three months later, attention has turned to whether this latest audit is part of the same broader push.
KB Kookmin Bank is looking into the circumstances of the tax audit. Internally, the bank is closely monitoring the scope of the National Tax Service's investigation and its potential impact on operations.
KB Kookmin Bank has recently been tightening its management of household lending, including capping mortgage loans for home purchases at 300 million won ($212,000) across all regions.
In addition, parent company KB Financial is pursuing a roadmap to channel a total of 110 trillion won in financing by 2030 — comprising 93 trillion won in productive finance and 17 trillion won in inclusive finance.
Separately, KB Financial is currently selecting its next chairman, with Lee Hwan-joo, the head of KB Kookmin Bank whose term expires in December, on the shortlist of candidates.
The group has said it will proceed with the selection on its set schedule, even as financial regulators have delayed announcing governance reform guidelines for financial holding companies.
KB Financial plans to narrow the field of chairman candidates from six to three on Aug. 27, then finalize a single nominee on Sept. 11.
The National Tax Service said it "cannot confirm information regarding tax audits of individual taxpayers."
oskymoon@heraldcorp.com
