Two Saemaeul Geumgo Employees Arrested for Embezzling 12.9 Billion Won from Customers Over 16 Years

[Asia Economy Reporter Yoo Hyun-seok] Two employees who embezzled nearly 13 billion won over more than 10 years at a Saemaeul Geumgo in Gangneung, Gangwon Province, have been arrested.

The Gangneung Police Station announced on the 9th that they arrested Mr. A in his 50s and Mr. B in his 40s on charges of embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

Mr. A and others are suspected of embezzling 12.9 billion won from the Saemaeul Geumgo’s budget, including customer deposits and savings, from 2006 until June of this year. It is understood that they colluded to embezzle the funds and then speculated on real estate.

While the two admitted to the embezzlement, they reportedly claimed that the amount was less than what the police had identified. Following the embezzlement incident revealed in May at the Songpa Central Saemaeul Geumgo in Seoul, the Saemaeul Geumgo Central Association conducted a special comprehensive inspection from June targeting 201 small-sized Geumgos nationwide with similar working conditions (six or fewer employees) under the Saemaeul Geumgo Act.

As a result, it was found that 2.2 billion won was missing at the Saemaeul Geumgo where Mr. A and others worked. Feeling pressured, the two turned themselves in to the police.

The Saemaeul Geumgo Central Association’s final inspection of the relevant Saemaeul Geumgo estimated the total financial accident amount at 14.8 billion won. The Central Association also held three current and former executives responsible for negligence in management and filed charges against a total of five people for violating the Act on the Aggravated Punishment of Specific Economic Crimes.

The police stated that based on the inspection data from the Saemaeul Geumgo Central Association, it is certain that Mr. A and others embezzled 12.9 billion won, which led to their arrest. Investigations into whether the other three were involved in conspiracy are ongoing, and pre-indictment seizure and confiscation requests will be filed to recover criminal proceeds.