25.07.03.Today News : Former BNK Kyongnam Bank Executive Gets 35 Years for Record ₩300 Billion Embezzlement

Former BNK Kyongnam Bank Executive Gets 35 Years for Record ₩300 Billion Embezzlement

• Court confirms sentence for lavish lifestyle funded by fraud; 101 gold bars found in home

The Supreme Court has upheld a 35-year prison sentence for a former executive at BNK Kyongnam Bank who embezzled nearly ₩300 billion ($220 million), marking the largest financial fraud case in South Korean banking history.

A former executive who embezzled 300 billion won from BNK Kyungnam Bank, the largest embezzlement in the financial sector, has been sentenced to 35 years in prison by the Supreme Court, while living a lavish lifestyle with more than 100 gold bars stored in his home.

On July 3, legal and financial sources confirmed that the Supreme Court’s 3rd Division, led by Justice Lee Heung-gu, finalized the sentence for Lee (53), former head of investment finance at BNK Kyongnam Bank, who was convicted of embezzling ₩298.8 billion over a 14-year period from 2008 to 2022.

However, part of the forfeiture order—worth approximately ₩15.9 billion—was overturned and sent back to a lower court for recalculation, as the value of the confiscated gold bars must be reassessed based on current market prices.

Lee acted alone at first, forging withdrawal slips to embezzle ₩80.3 billion. From 2014, he collaborated with Hwang (54), a former employee at Korea Investment & Securities, to misappropriate another ₩228.6 billion using fake project finance documents and by impersonating real estate developers.

The stolen funds were funneled through multiple accounts under family and acquaintances’ names. Prosecutors revealed that Lee and his family lived in a luxury villa in Seoul's affluent Samseong-dong area, spending over ₩70 million ($50,000) per month on living expenses. They purchased luxury goods, real estate, fitness and golf club memberships, and covered their children's overseas education costs.

When authorities launched their investigation, Lee’s family actively assisted in concealing assets. His older brother managed three apartments used to hide assets, and his wife converted cash into checks, hiding them in kimchi containers. Investigators found 101 gold bars (1kg each), ₩4.5 billion in cash, and $50,000 in U.S. currency.

Hwang was sentenced to 10 years in prison with a forfeiture order of ₩1.1 billion. All seven accomplices involved in money laundering, including Lee's wife and brother, received prison sentences as well.

Financial regulators stressed the urgent need to strengthen internal controls and surveillance mechanisms within financial institutions to prevent similar large-scale fraud cases in the future.

One-line summary : A former BNK Kyongnam Bank executive was sentenced to 35 years in prison for embezzling ₩300 billion and living a lavish lifestyle with family involvement.