South Korea’s Financial Supervisory Service (FSS) said it will strengthen oversight of banks and financial firms following revelations of improper lending practices. The regulator found Industrial Bank of Korea (IBK) extended inappropriate loans worth KRW86.2bn (USD58.6m) to former employees and their families—well above its earlier estimate of KRW24bn. IBK officials also received gifts and favours from borrowers, the FSS said. The agency vowed stern action and plans to issue stricter internal control guidelines to prevent future misconduct. Such illegal loans will be penalised under existing rules, the FSS said. The latest findings follow earlier disclosures of inappropriate loans totalling KRW387bn by Woori Bank, KB, and NH Nonghyup, as the watchdog ramps up scrutiny across the sector.