Prosecutors Arrest Son Tae-seung's Brother-in-Law, Former Woori Financial Chairman, on Suspicion of Fraudulent Loans

The prosecution has arrested the brother-in-law of former Woori Financial Group Chairman Son Tae-seung in connection with allegations of illegal large-scale loans made to the former chairman's relatives.

[Image source=Yonhap News]

On the 6th, the Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Kim Su-hong) announced that around noon the previous day, they arrested Kim, the brother-in-law of former Chairman Son, on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement) and forgery of private documents.

Kim is suspected of inflating the transaction amount on the sales contract while purchasing real estate through a corporation, thereby receiving excessive loans from Woori Bank. The prosecution conducted raids on eight offices, including Woori Bank's headquarters in Jung-gu, Seoul, and the Seolleung Financial Center, as well as four residences of individuals related to the case on the 27th of last month.

Meanwhile, Woori Bank, a subsidiary of Woori Financial Group, provided a total of 61.6 billion KRW (42 cases) in improper loans to the brother-in-law's household and nephew, among other relatives, over approximately four years from April 3, 2020, to January 16 of this year. Of these, 35 billion KRW (28 cases) are suspected to be preferential loans due to missing loan documents or improper evaluation of collateral and guarantees. Former Chairman Son served as chairman, including concurrently holding the position of bank president, from January 2019 until early last year, and a significant portion of the loans were executed during his tenure.