Employee Confesses to Embezzling 1.1 Billion Won from Saemaeul Geumgo in the Secondary Financial Sector

Small Branch with 5 Employees... Employee Who Worked for 30 Years Embezzled '1.1 Billion Won'
Possibility of Embezzlement Amount Increasing↑

[Asia Economy Reporter Jang Sehee] An employee at Saemaeul Geumgo, a secondary financial institution, who embezzled at least 1.1 billion KRW from customer deposits, has been arrested by the police.

On the 25th, the Songpa Police Station in Seoul announced that they have booked and are investigating Mr. A, a man in his 50s and an employee of Saemaeul Geumgo, on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes.

According to the police, Mr. A worked for over 30 years at the headquarters of Jungang Saemaeul Geumgo located in Songpa-gu, Seoul, and is suspected of embezzling money by enrolling customers in deposit or insurance products. He is reported to have used a so-called "ponzi scheme" method, paying new depositors with the funds of maturing existing customers.

It is reported that he recently turned himself in to the police after several employees at private companies such as Woori Bank were caught for embezzlement.

However, since Mr. A embezzled company funds over several decades, the total damage is expected to exceed 1.1 billion KRW. Saemaeul Geumgo recently imposed disciplinary action on Mr. A and launched an internal audit.

At the time, it is known that five employees were working at the branch. The police stated, "Mr. A testified that he committed the crime together with his superior, who has also been booked and is under investigation."