Elder Sister of Former Local Government Head Who Embezzled Large Sum of Rotating Savings Group Funds Faces Trial

Prosecutors: "Inducing Membership in Nakchal-gye by Flaunting Wealth"

The older sister of a former basic local government head in the Busan area has been brought to trial on charges of embezzling a large sum of money from a rotating savings group. On the 4th, the Eastern Branch of the Busan District Prosecutors' Office announced that it had arrested and sent to trial Ms. A, the older sister of a former county governor, on charges of fraud for embezzling money from members while operating a bidding savings group.

Ms. A is accused of embezzling 1.7 billion won collected from 23 victims while operating 10 bidding savings groups. A bidding savings group is a type of rotating savings group where members receive the pooled money in order based on who bids the lowest amount they are willing to accept or offers the highest interest. Ms. A is also accused of borrowing 150 million won from two members and failing to repay it.

The prosecution stated, "She emphasized that her younger brother was a basic local government head and flaunted her wealth to induce people to join the bidding savings groups. She also secretly took the pooled money without the members' knowledge or won bids under fake names." They added, "It has been confirmed that the money received from the victims was used to repay debts, and the damages have not yet been compensated."

They continued, "We will respond strictly to crimes that infringe on the livelihood of many innocent victims and cause enormous damage," and "We will do our utmost in the prosecution to ensure that the defendant receives a sentence commensurate with the crime."