SEOUL – Woori Bank, one of South Korea’s leading commercial lenders, has announced a sweeping crackdown on financial fraud by imposing strict withdrawal limits on accounts held by suspended or shuttered corporations. This strategic move aims to preemptively block the circulation of "daepo" accounts (illegal proxy accounts) often used in money laundering and voice phishing operations.
A Shift Toward Preemptive Prevention
On April 16, Woori Bank officially launched its "Corporate Account Limit Restriction" and "On-Site Field Inspection" initiatives. The policy reflects a fundamental shift in the bank's security paradigm: moving from reactive damage control to proactive crime prevention.
Historically, financial criminals focused on establishing new "paper companies" to open fraudulent accounts. However, as regulations on new account openings tightened, syndicates began pivoting toward dormant accounts of defunct businesses. These accounts, often overlooked by traditional monitoring systems, provide a convenient veil for illicit transactions.
Targeted Restrictions and Verification
The new restrictions primarily target corporations officially listed as "closed" as of the end of February 2026. For these entities, Woori Bank will systematically lower daily withdrawal and transfer limits.
"We have observed a rising trend where accounts of closed or long-dormant businesses are being hijacked for criminal activities," said Namgoong Yu, Manager at Woori Bank's Financial Fraud Prevention Department. "By implementing these limits, we are cutting off the oxygen for these fraudulent networks before they can inflict harm on consumers."
The bank clarified that these measures are not permanent roadblocks for legitimate businesses. If a company resumes operations or can provide valid documentation for necessary financial transactions, the restrictions can be lifted following a rigorous verification process.
Strengthening Field Surveillance
Beyond digital restrictions, Woori Bank is intensifying its physical oversight. The bank’s specialized task force will conduct on-site inspections of business premises suspected of high-risk activity, particularly those where prior agreements regarding victim compensation or fraud recovery have been rescinded.
If an inspection reveals that a workplace is non-existent or being used for illegitimate purposes, the entity will be flagged as a "Special Management Corporation." Once designated, these entities will face the highest level of scrutiny, with their ability to conduct further financial transactions with Woori Bank being severely curtailed.
Advancing Consumer Protection
This initiative is part of a broader effort by Woori Bank to modernize its financial consumer protection framework. By integrating field-based intelligence with transaction monitoring, the bank seeks to restore trust in corporate banking transactions.
"Our priority is to enhance the integrity of the financial system," Namgoong added. "We will continue to evolve our security protocols to stay ahead of increasingly sophisticated financial crimes, ensuring a safer banking environment for all customers."
The banking industry expects other major lenders to follow suit, as the South Korean government continues to pressure financial institutions to take more accountability for the prevention of electronic financial fraud.
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