Prosecutors Raid Former Team Leader of Korea Investment & Securities for 'Illegal Private Loan Brokerage and Kickbacks'

Suspected of Receiving Commissions After Arranging Private Loans for Real Estate Project Financing

Prosecutors conducted a search and seizure of a securities firm employee suspected of arranging private loans related to real estate project financing (PF) and pocketing commissions.

The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Seung-hak) carried out search and seizure operations on the 14th at three locations, including the home of former team leader A of Korea Investment & Securities (KIS) and the Yeouido headquarters, on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (private loan brokerage). A is suspected of arranging tens of billions of won in private loans and collecting high interest while serving as the PF team leader at KIS.

Last year, the Financial Supervisory Service conducted a planned inspection of five securities firms related to PF and detected signs of illegal gains by securities firm executives and employees, which it reported to the prosecution. Subsequently, the prosecution launched an investigation and indicted three individuals, including a former head of LS Securities, on charges of embezzling 83 billion won in loans based on undisclosed information obtained while working on PF operations.