To open a bank account in the era of financial scams

It all began with a post office bankbook that I found at my house. The bankbook was opened in 1999 with a meager 10 won (about 1 cent). I’ve never used the bankbook and it seems weird that I opened a bank account to save only 10 won. Did I open a bank account at the request of my acquaintance? Well, I could not remember vividly.

I went to a post office adjacent to my workplace during lunch time to close the bank account 16 years after it was opened and decided to open a new one. The post office teller was somewhat strict. The teller asked me why I want to open a bank account after scanning my appearance in casual clothing. Oh my, do I have to confess that I need to save some pocket money for after-retirement without my wife knowing it? The post office should say thank you to me, since I was there to deposit my money. Even worse, I was asked to write the purpose of opening a bank account? The clerk asked for my understanding, saying, "So many borrowed-name accounts are used for financial scams these days."

The teller said, “Since you had not been using the previous bank account, your savings of 10 won was vested in the state coffer. But if you want, it can be reimbursed.” I replied I was willing to donate the money to the state. I had to give my ID card and employee ID card for photocopying. I was asked to sign on a statement saying that "I will never give my bankbook to others." It does not feel good as if I was treated like a crime suspect. After researching, I found out it was not unique to the post office. As the Korean government has waged a war against bankbooks opened with borrowed names, the hotbed of financial frauds in most cases, it has become complicated to open a bank account and issue a new bankbook at all financial organizations.

According to the Financial Supervisory Service, the number of borrowed-name accounts used in phishing fraud and other scams was 44,705 in 2014, increased by 16.3 percent from 38,437 in 2013. After introducing the system to ask purposes to open a bank account before issuing a new bankbook, NH Nonghyup Bank, of which bankbooks have been frequently used in scams, reduced its proportion in the total number of the borrowed bankbooks from 20 percent in March last year to 2 percent this February. As the system has proven its effectiveness, it would be necessary to actively cooperate to the financial organizations even though it puts ordinary people at inconvenience. There are placards hung by the police on the street which proclaim to "eradicate bankbooks, cars and mobile phones under borrowed names." When comparing to practices in other nations, it is rather easier to open a bank account and issue a credit card in Korea.

eligius@donga.com