11 Public Officials Who Borrowed from Bucheon Livestock Cooperative Referred for Investigation... NongHyup Bank Branch Provides Information

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] Financial authorities have decided to request an investigation into Bucheon Livestock Agricultural Cooperative and NH Nonghyup Bank Duryu Branch, which are linked to real estate speculation allegations involving employees of Korea Land and Housing Corporation (LH). This is a follow-up measure to the on-site inspections and checks related to real estate speculation conducted earlier.

According to financial authorities on the 9th, the "Special Financial Response Team for Real Estate Speculation" discovered suspicious cases of real estate speculation during the Financial Supervisory Service's on-site inspections of Bucheon Livestock Agricultural Cooperative and NH Nonghyup Bank Duryu Branch, and took steps to request an investigation by the government joint special investigation headquarters.

In the case of Bucheon Livestock Agricultural Cooperative, considering the timing of loans provided for new town farmland purchase funds to public officials (8 people) and their families (3 people), there is suspicion of illegal activities such as "use of undisclosed information." In particular, 29 loan borrowers (amounting to 9.42 billion KRW) who converted farmland into non-agricultural uses such as storage warehouses, potentially violating the Farmland Act, will also be referred for investigation.

Additionally, possible violations of financial regulations were found during the loan processing for cooperative employees and their families, and necessary procedures are being carried out.

Regarding NH Nonghyup Bank Duryu Branch, suspicious speculation cases related to specific land for LH sales at the Daegu Dalseong-gun comprehensive medical facility were discovered. Considering that the special investigation headquarters is currently conducting an investigation, the financial response team plans to provide information such as financial transaction details of related parties to the investigative agencies.

Furthermore, the financial response team has decided to actively respond based on the results of the ongoing comprehensive inspection of non-residential collateral loans across the financial sector and reports received at the reporting center.

In particular, inspections will be expanded to branches of financial institutions where new loan amounts surged before and after the announcement of the designation of the 3rd new town. If suspicion of speculation is found, cases will be immediately referred to the special investigation headquarters.

Moreover, regarding recent allegations of real estate speculation by some agricultural corporations, it will be reviewed whether they fall under collective investment business under the Capital Markets Act, and if unauthorized collective investment business operation is confirmed, measures such as reporting to investigative agencies will be taken.