[Exclusive] Caught Red-Handed... Kickback Transactions in Sales Agency and Trust Company Accounts

Former Korea Asset Trust Executives and Employees
Prosecutors Detail Bribery in Indictment

[Image source = Yonhap News]

“Thanks to you, Executive Director, I was able to make a significant profit.” “If you provide your account number...”

This is part of a conversation between the representative of a sales agency and an executive of an asset trust company. What followed was exactly as everyone expected. Initially, 5 million won was transferred to the executive’s account, followed by 50 million won with an additional zero. It might seem unbelievable that someone would dare to exchange bribes through bank accounts, but this is what the prosecution’s investigation revealed.

The Seoul Central District Prosecutors’ Office Anti-Corruption Investigation Division 3 (Chief Prosecutor Lee Seung-hak) indicted former Korea Asset Trust Executive Director Baek Mo, who was arrested last month on charges of accepting bribes from a sales agency in exchange for contracts. According to the indictment obtained by this publication, Baek and the sales agency representative Kim Mo met at the asset trust office, where Kim asked for Baek’s account number, and Baek immediately sent a photo of his bankbook account number taken with his smartphone. The prosecution revealed that these secret meetings occurred on January 17, 2020, and April 19 of the following year, during which a total of 55 million won was exchanged. At the second meeting, the sales agency representative Kim said, “I will send it to the account you provided last time.” The benefits Kim received in return for the bribes were the sales agency rights for officetel projects located in Jeju and Incheon, with commissions amounting to 2.2092 billion won, 5.55935 billion won, and 8.65648 billion won, respectively, according to the prosecution.

Baek was not the only one involved. The indictment also revealed that An Mo, a manager, and Yoon Mo, a deputy general manager, both from the same trust business division as Baek, received money from the same sales agency. The prosecution stated that each received 79.2 million won. Around February 2022, Deputy General Manager Yoon received a proposal at the office from the sales agency saying, “Thank you for resolving the dispute at the Jeju site. We want to show our appreciation.” Yoon conveyed this to his superior An, and the two agreed to “share the money amicably.” The indictment also stated that they received several tens of millions of won more shortly thereafter.

The industry analyzes that such brazen bribery occurs because real estate trust companies operate in a blind spot of government supervision. An official from the real estate development industry said, “Illegal and illicit behavior by trust company executives and employees is an open secret in the industry,” adding, “This is just the tip of the iceberg.”

This case was uncovered during a thematic inspection of Korea Asset Trust conducted by the Financial Supervisory Service from February to March last year, which led to a request for investigation by the prosecution. In October last year, the prosecution raided Korea Asset Trust and arrested and indicted three individuals, including Baek. The total amount of money they received reached 320 million won.