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Photo= Korea Investment & Securities |
[Alpha Biz= Kim Sangjin] Prosecutors have launched a search of the securities firm executive's property in connection with an alleged loan mediation of illegal private financing (PF), amounting to tens of billions of won.
The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (led by Chief Prosecutor Lee Seung-hak) carried out searches on Tuesday at the headquarters of Korea Investment & Securities and the home of former team leader A, who is accused of violating the Specific Economic Crimes Aggravated Punishment Act (for mediation of private financing) and the Usury Act.
A is reported to currently serve as a senior executive at a subsidiary of Korea Investment & Securities.
Last year, the Financial Supervisory Service (FSS) uncovered indications of illegal profits by securities firm employees during an inspection of five securities companies in January, which led to a referral to prosecutors.
Based on this, the prosecutors initiated an investigation and discovered that A, who was in charge of PF at Korea Investment & Securities, had mediated private loans exceeding the PF loan limit, receiving excessive interest fees. It is reported that the interest charged was high enough to match the principal amount.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
