The National Credit Union Federation of Korea announced disciplinary actions on the 9th against officials of the Daegu Suseong Saemaeul Geumgo involved in the illicit loan scheme related to Yang Moon-seok, a member of the Democratic Party of Korea.
According to the disclosure released that day, one executive and two employees received reprimands, and one employee was given a pay cut.
They were reportedly involved when Representative Yang took out a loan of 1.1 billion KRW in 2021 under the name of his university student daughter. The 1.1 billion KRW loan, ostensibly for business operating funds, was used to repay 580 million KRW borrowed from a private lender during Yang’s purchase of an apartment in Seocho-gu, Seoul, for 3.12 billion KRW in November 2020, as revealed by the prosecution investigation and other inquiries.
The National Credit Union Federation of Korea stated that the reasons for the sanctions included misuse of funds for purposes other than business operating funds (refinancing housing purchase funds and household loan refinancing), failure to verify the appropriateness of the loan-to-income ratio (LTI) for business operating funds, and failure to conduct on-site inspections.
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