[THE INVESTOR] State-run Korea Development Bank officials used debtor companies’ funds for housing, vehicles and entertainment, audit results showed on June 15.
According to the Board of Audit and Inspection, KBD officials dispatched to oversee management of companies undergoing restructuring used the companies’ funds for unnecessary conveniences and entertainment.
The audit showed that 16 KDB staff received housing from seven companies they were sent to oversee, while 36 bank officials used vehicles at the expense of 14 companies under their care.
The BAI pointed out that despite KDB’s duty to oversee restructuring, the bank failed to draw up related guidelines and resulted in placing more burden on ailing companies.
Other instances of malpractice on the part of KDB officials include one official who used the corporate credit card issued to the company he was sent to oversee to pay for a 3.8 million won ($3,200) bill that resulted from drinking.
By Choi He-suk (
cheesuk@heraldcorp.com)
