Prosecutors Request Arrest Warrants for Korea Asset Trust Executives Over Alleged Bribery Charges

Investigation Launched at the Request of the Financial Supervisory Service, Service Provider Accused of Bribery

Yonhap News

The prosecution has requested arrest warrants for executives and employees of Korea Asset Trust who are accused of receiving bribes from a service company.

According to the legal community on the 19th, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Seung-hak) filed arrest warrants with the court yesterday for three former executives, including former Executive Director Baek, on charges of bribery under the Act on the Aggravated Punishment of Specific Economic Crimes.

They are accused of receiving tens of millions to hundreds of millions of won in bribes from sales agency companies in exchange for awarding contracts. The prosecution has been investigating Korea Land Trust, Korea Asset Trust, and their current and former employees since May, following a request from the Financial Supervisory Service, on charges including bribery under the Special Act, illegal private lending mediation, and violations of the Loan Business Act.

According to the Financial Supervisory Service's inspection results, employees of Korea Asset Trust lent approximately 2.5 billion won in land purchase funds to developers through personal corporations they owned or arranged loans, receiving 700 million won as interest. Some loans had an interest rate of up to 100% per annum, with an effective interest rate of 37% per annum, exceeding the legal maximum interest rate of 20% per annum.

On the 31st of last month, the prosecution conducted raids on more than ten locations, including the residences and offices of current and former Korea Asset Trust employees, and on the 14th, summoned Baek as a suspect for questioning.