The Korea Development Bank (KDB) is facing a financial accident risk amounting to around 58 billion won due to suspected corporate finance-related fraud by a client.

KDB disclosed on the 10th that it discovered the financial accident had occurred on July 22 during the National Police Agency's notification and visit for a search and seizure.

The accident amount stands at KRW 58,347,993,000.

This is the amount KDB lent to the client, and the exact confirmed figure is yet to be finalized as the collateral value has not been reflected.

Police investigations into the client are currently underway on fraud charges, and the accident amount may change depending on the investigation results.

KDB stated that it currently classifies the loan as a normal loan since there are no delinquencies, but it has deployed security services to manage and prevent the collateral from disappearing arbitrarily.

In addition, if a problem arises and the benefit of time—the right to repay money over time until maturity—is revoked, the bank plans to immediately process the collateral and recover the loan.

KDB added, "Since a significant portion is secured by collateral, the actual potential loss amount would be lower than the disclosed figure even if a problem occurs."

(Photo: Yonhap News)