Does Not Recognize the Necessity and Proportionality of Detention
Kim, Taekwang Group's 'Second-in-Command,' Removed from Management Due to Misconduct Allegations
Prosecutors Investigating Unfair Loan Case Related to Kim Giyu
The Seoul Western District Court dismissed the arrest warrant for Kim Ki-yu (69), former chairman of the Taekwang Group Management Council, on the 4th. Kim is under prosecution investigation for allegedly ordering an improper loan worth around 15 billion won.
The court explained, "Since multiple pieces of evidence related to the crime have been secured, there is no concern of evidence destruction, nor is there a risk of flight," and added, "At this stage, the necessity and reasonableness of detaining the suspect are not recognized."
After the warrant hearing, Kim’s lawyer avoided directly answering questions about whether he admits to the charges, stating that specific facts cannot be confirmed.
Kim is accused of instructing the then CEO Lee (65) of a real estate development company, who is an acquaintance, to execute a loan of approximately 15 billion won through the then group affiliates Goryeo and Yegaram Savings Banks, represented by CEO Lee (58), in August last year. Lee was reportedly in a situation where it was difficult to obtain loans from other financial institutions, and although the savings bank’s operational team submitted a review opinion stating "high business risk," the loan was pushed through at Kim’s request.
About two months after the loan was made, 10 million won was transferred to Kim’s wife’s account, according to investigations. The prosecution began an investigation in November last year after receiving a report from a law firm conducting an external audit of Taekwang Group, and indicted Lee and the former CEO.
Kim served as the group’s "second-in-command" managing operations after former Taekwang chairman Lee Ho-jin was detained in 2011, but after Lee’s release from prison, the two have been in conflict and disputes. Lee was released after a special pardon in August last year, and the company dismissed Kim citing allegations of misconduct. Kim is currently also under prosecution investigation for allegedly conspiring with Lee to create slush funds.
Taekwang’s side claims, "Kim reported to investigative authorities to shift his own illegal acts onto former chairman Lee."
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