Finance

Outsider loan fraud hidden as \'normal loans\' piles up, raising questions over banks\' defences

South Korean banks are strengthening internal controls to prevent financial incidents, but loan fraud involving outsiders continues to surface. Detecting fraud is difficult when loans remain current and are managed as normal credit, or when parties disguise transactions as legitimate. Hana Bank disclosed a 2.42 billion won incident tied to suspected fraud, while recent disclosures by Korea Development Bank and Industrial Bank of Korea were reported to involve the same counterparty.

Industry

Naver, Kakao face new test of labor relations over head office responsibility

Naver and Kakao are facing a new test of labor relations as they run multiple affiliates and restructure governance. Naver’s union is seeking unified bargaining covering 16 entities, arguing key decisions are shaped by the head office despite separate talks. Kakao is set to face a demand for joint bargaining across major affiliates as it plans a corporate split into KakaoAI and KakaoX. The disputes focus on how to balance subsidiary independence with group-level responsibility.