Establishment of Internal Control System
IBK proactively introduced the Responsibilities Map in line with the amendment to the Act on Corporate Governance of Financial Companies (effective January 2, 2024), and actively participated in the pilot operation organized by the Financial Supervisory Service in November to December 2024. To strengthen internal control, the bank has established a three-tier internal control body, reviewing the handling of employee family loans, PF (Project Finance) fund execution, and the appropriateness of job separation implementation, while taking proactive measures to prevent financial incidents.
Strengthening Internal Controls to Prevent Financial Incidents
IBK has strengthened its internal control functions to prevent financial incidents and improved its internal control system based on the analysis of financial sector incident cases.
Internal Control Enhancement Programs
- Blocking unauthorized transactions: Establishment of an electronic blocking system to prevent foreign exchange financial incidents
- Strengthening job separation electronic controls: System integration to prevent job duplication by the same individual
- Improvement of deposit withdrawal services: Simplification of seal verification procedures to prevent unauthorized use of seals
- Enhancement of high-risk transaction incident prevention SMS: Improvement of customer notification procedures and strengthening of approval authority
In 2024, IBK implemented the Internal Control Innovation Plan led by the Financial Supervisory Service early, strengthening internal controls such as management of long-term employees, enhancement of fund execution supervision, improvement of job separation standards, and strengthening of KPI management. Additionally, through the “Responsible Approval” system, which reviews the appropriateness of large financial transactions, IBK has enhanced security by utilizing a vein recognition and employee authentication app in addition to password authentication.
Spread of Compliance Culture
IBK has continuously expanded education for the prevention of financial incidents and compliance with regulations.
Compliance and Financial Incident Prevention Education Programs
- Internal control and incident prevention field exchange: Conducting internal control education for regional headquarters and branch managers
- Thematic education for preemptive legal risk prevention: Providing tailored education on financial product advertising, Chinese Wall compliance, etc.
- Anti-corruption and integrity education: Conducting anti-corruption education and improvement activities for all employees
- Operation of on-site internal control inspection system: Diagnosis and improvement support for internal control adequacy through branch visit consulting
Enhancement of Compliance Management and Legal Compliance System
IBK has revised relevant internal regulations to strengthen its legal compliance and internal control capabilities. With the revision of the Internal Control Regulations, IBK has introduced a Responsibilities Map, strengthened the board's role in internal control oversight, and incorporated the Internal Control Committee into the board. Also, through the revision of the Operational Manual, the bank has established a new provision for the reduction of loan principal and interest in accordance with the implementation of the Personal Debtor Protection Act.
In addition, to enhance the synergy of internal control within the IBK Financial Group, the bank held the “IBK Financial Group Chief Compliance Officer meeting” four times, where chief compliance officers shared the status of internal control operations and key issues, further strengthening the internal control cooperation system. IBK will continue to improve its internal control system, prioritizing compliance with regulations and the prevention of financial incidents to create a trustworthy financial environment.
IBK Financial Group’s Chief Compliance Officer meeting