SEOUL, Oct 10 — South Korea’s financial institutions, including banks, brokerages, and insurers, have spent a massive 2.4 trillion won (US$1.78 billion) on entertaining clients over the past five years, according to data revealed yesterday.

According to figures from the Financial Supervisory Service (FSS) submitted to Rep. Kim Hyun-jung of the Democratic Party of Korea, between 2019 and mid-2023, banks alone accounted for 957.8 billion won, brokerages 1.13 trillion won, and insurance companies 308.5 billion won in entertainment expenses.

The country’s five largest banks made up over 64.7 per cent of the total entertainment spending by banks.

Kim expressed concern over these expenditures, especially amid ongoing scrutiny following cases of embezzlement, improper loans, and other financial scandals.

"Given that financial sector profits are fundamentally driven by customer fees, we need to ensure that entertainment expenses are not being abused,” she said.

In February, the FSS conducted investigations into major securities firms, including Mirae Asset Securities and NH Investment & Securities.

The probe revealed that a KB Kookmin Bank employee had accepted over 15 golf outings between January 2021 and June 2022, resulting in a three-month suspension for violating the bank’s integrity code.

Kim urged stronger oversight, warning that the increasing entertainment expenses could lead to further illegal activities. "Financial authorities must take action and establish regulations, rather than leaving it to companies to self-regulate,” she added.