Industrial Bank of Korea CEO Chang Min-young is facing pressure in Seoul amid fraud lapses and a relocation dispute with the bank’s labor union. The bank failed to immediately identify a 965 million won real estate loan fraud case even after receiving a police search warrant, then later extended another 1.9 billion won loan to one borrower. A separate case at its Chinese subsidiary led to an 83.4 billion won loss, while the union is pushing the CEO to take a firmer stance on a possible headquarters move.
Industrial Bank of Korea (IBK) CEO Chang Min-young speaks during a ceremony marking the bank’s 65th anniversary at the company headquarters in Seoul, July 31. Courtesy of IBK
Industrial Bank of Korea (IBK) CEO Chang Min-young is facing a test of his leadership amid a series of fraud cases and growing tensions with the bank's labor union over a potential relocation.
According to documents obtained by Rep. Shin Dong-wook of the People Power Party from the Financial Supervisory Service (FSS) and IBK on Wednesday, the state-run lender failed to immediately detect a real estate loan fraud case last year, despite receiving a police search warrant detailing the alleged scheme.
The Incheon Metropolitan Police Agency sent IBK a search warrant and a request for cooperation on Sept. 24, 2025. The warrant said a real estate developer and brokers had allegedly used falsified sales contracts and down-payment records to obtain 965 million won ($722,000) in loans from the lender.
