[Exclusive] Prosecutors: Borrower of '15 Billion Won Illegal Loan' Transferred 10 Million Won to Account of Former Taekwang Chairman's Wife

Prosecutors' Crime List Includes Remittance Details
Defense Counsel: "That Information Is Not True"

The detailed embezzlement details of Mr. A (64), the CEO of a real estate development company who is on trial for receiving an unfair loan of 15 billion KRW from Yegaram and Goryeo Savings Banks affiliated with the Taekwang Group, have been included in the prosecution's crime summary table.

When the prosecution indicted Mr. A in custody, the indictment stated that he used 8.66472 billion KRW through a borrowed-name account for personal purposes such as stock investment unrelated to the loan purpose, and among this amount, 10 million KRW was transferred to the account of the wife of former Taekwang Management Council Chairman Kim Giyu, as specified in the crime summary table.

On the 27th, Asia Economy obtained Mr. A's indictment 'crime summary table,' which contains details of 8.66472 billion KRW spent in 39 transactions out of the 15 billion KRW loaned. This money is alleged to have been embezzled by Mr. A for personal use such as stock investment and business funds, unrelated to the loan purpose. According to this, on August 31 of last year, Mr. A divided and transferred 10 billion KRW out of the loan received from Yegaram and Goryeo Savings Banks to bank accounts in the name of Mr. B, a borrowed-name account holder, with 6 billion KRW, and to the bank account in the name of Mr. C with 4 billion KRW.

The next day, September 1 of the same year, the entire 4 billion KRW in Mr. C's account was issued as cashier's checks: three 1 billion KRW bills, eight 100 million KRW bills, and twenty 10 million KRW bills. The prosecution stated in the crime summary table that among the 4 billion KRW issued by Mr. A, one 10 million KRW cashier's check was embezzled on October 24 last year by paying it into the bank account in the name of the wife of former Chairman Kim.

The former Chairman Kim's side and borrower Mr. A's lawyer denied the allegations. In a phone call with Asia Economy, Mr. A's lawyer said, in response to the question, "Isn't the remittance detail recorded in the crime summary table indicative of a quid pro quo related to the 15 billion KRW unfair loan?" “I understand that the content is not true,” and added, “It is difficult to comment on matters currently under trial.”

Former Chairman Kim also drew a clear line in a phone call with this paper, saying, “That story (the facts recorded in Mr. A's indictment) has nothing to do with me.” When asked about the prosecution's crime summary table indicating that 10 million KRW was transferred from borrower Mr. A to the account of former Chairman Kim's wife, he said, “It is not true at all, and I have never heard of it.”

Meanwhile, on July 23, the prosecution indicted former representatives Mr. D of Yegaram and Goryeo Savings Banks and borrower Mr. A on charges including violation of the Specific Economic Crimes Act (breach of trust) while in custody. Mr. D is accused of ordering a 15 billion KRW bad loan in violation of internal regulations without sufficient review, and Mr. A is accused of requesting a loan through former Chairman Kim and submitting false documents. The first trial was held on the 26th of last month, and both denied the charges. The next trial is scheduled for October 10.