[Alpha Biz= Reporter Kim Jisun] Former executives of Yeagaram and Koryo Savings Bank, affiliates of Taekwang Group, have been indicted for their alleged involvement in a fraudulent loan amounting to 15 billion KRW (approximately $150 million).
The Seoul Western District Prosecutors' Office's Criminal Division 4 (headed by Prosecutor Yeo Kyung-jin) announced on the 23rd that former CEO A (58) of Yeagaram and Koryo Savings Bank, and construction company CEO B (64) have been indicted and detained on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust). The former Chief Risk Officer C of the savings bank has been indicted without detention.
According to the prosecution, B is accused of requesting a loan through a high-ranking official of Taekwang Group in August 2023 and submitting false documents during the loan application process. A and C are charged with instructing the loan officers to approve a loan of approximately 15 billion KRW to B's construction company without adequate review, in violation of internal regulations. The prosecution believes that these actions caused financial damage to the savings bank.
Furthermore, it was found that B used a borrowed-name account to receive the loan and misappropriated 8.6 billion KRW of the funds for personal use, including stock investments, which was unrelated to the stated purpose of repaying existing loans.
A representative of the prosecution stated, "After receiving complaints from the affected banks, we conducted searches and account tracing to uncover the defendants' involvement in the fraudulent activities," and added, "We will ensure that the defendants receive appropriate sentences corresponding to their crimes."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
