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Photo = IBK Industrial Bank |
[Alpha Biz= Paul Lee] Seoul, June 9 – The Seoul Central District Prosecutors’ Office has reapplied for arrest warrants for a current and a former employee of IBK Industrial Bank of Korea (IBK) in connection with a massive fraudulent loan scheme totaling hundreds of billions of Korean won, judicial sources said Sunday.
The Anti-Corruption Investigation Division 1, led by Prosecutor Lee Jun-dong, filed for the arrest of current employee Cho (first name undisclosed) and former employee Kim on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
The decision to refile for the warrants reportedly stems from the scale of the crime and recent precedents in similar cases where suspects were detained.
Earlier, the Financial Supervisory Service (FSS) uncovered unlawful loans totaling 88.2 billion KRW (approximately USD 64 million), involving current and former IBK employees, their spouses, peers, social circles, and business affiliates, and referred the case to the prosecution for criminal investigation.
Kim, a former IBK employee, allegedly operated real estate agencies and a law office under borrowed names and, from June 2017 over a span of seven years, secured approximately 78.5 billion KRW in fraudulent loans by colluding with 28 current IBK staff, including his spouse, a loan screening officer.
Though the FSS cited a fraud amount of 78.5 billion KRW, prosecutors have reportedly listed a smaller sum in the formal warrant application.
Prosecutors also uncovered evidence suggesting that Cho received illicit payments from Kim in exchange for approving loans, prompting joint arrest warrant requests for both individuals.
In March, prosecutors raided IBK headquarters, and in May, initially filed for their arrest. However, the court dismissed the request, citing potential infringement of the suspects’ right to defense.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
