BAI Reviews the Investigation on Bank Accounts of Hyundai Shipping

It was known that Board of Audit and Inspection of Korea (BAI) auditing Industrial Bank demanded to submit documents about the usage details of the fund loaned to Hyundai Shipping.

BAI has a plan to decide whether to inspect bank accounts of Hyundai Shipping after reviewing the documents in this week.

At 20th, one of high rank officers of BAI said, “BAI asked Industrial Bank to submit documents about Hyundai Shipping such as the details of the fund usages etc.” and added “Hyundai Shipping is not the subject to BAI`s auditing and investigation. However BAI can demand documents through Industrial Bank indirectly in accordance with the Regulation of Board of Audit and Inspection of Korea.”

As BAI began auditing on Industrial Bank announced that if necessary, it would ask to submit materials about Hyundai Shipping at 14th. So it is supposed that BAI couldn`t solve the scandal of Hyundai Shipping and demanded the materials.

Another officer of BAI said, “Since the auditing, BAI has reviewed the rightness of the loan procedure for Hyundai Shipping through the materials submitted by Industrial Bank.” and added, “BAI will decide if it will investigate ban accounts or not after reviewing the materials intensively in this week.”

He also added, “Even if BAI decide to investigate bank accounts, the bank accounts of Hyundai Shipping is not the subject to the investigation legally, however, if the accounts are connected with the accounts of Industrial Bank, Hyundai`s accounts can be traced.“

According to 27 phase of regulation of Board of Audit and Inspection of Korea, if necessary, BAI is allowed to investigate bank accounts of the subject organization.

BAI will perform comprehensive auditing and investigation on Industrial Bank by 1st of November such as the loan procedure, management of loan for companies and if it observed or not, rightness of investment on venture business, the loan to Hyundai Shipping, etc.

Chi-Young Shin higgledy@donga.com