The arrest warrants for current and former employees of IBK Industrial Bank of Korea, who are suspected of involvement in improper loans amounting to around 80 billion won, have been dismissed.
Employee of Industrial Bank of Korea suspected of improper loan attending the warrant hearing. Yonhap News
On April 28, Judge Jeong Jaeuk, the judge in charge of warrants at the Seoul Central District Court, dismissed the prosecution's request for arrest warrants for Mr. Cho, a current employee of IBK, and Mr. Kim, a former employee, who are both accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).
Judge Kim explained regarding Mr. Cho, "The overall facts are acknowledged, but in the case of fraud, there is room for legal dispute, and regarding the charge of instigating evidence fabrication, there is also room to contest whether there was collusion. Therefore, it is necessary to guarantee the right to defense."
Regarding Mr. Kim, the judge stated, "It is difficult to fully acknowledge the circumstances, degree of involvement, or intent of the suspect in the loan process as described in the arrest warrant application. Given the progress of the investigation, there is concern that arresting the suspect would excessively limit the right to defense." The judge also added, "Considering the evidence already secured through extensive searches and investigations of related parties, it is not reasonable to conclude that there is a greater risk of evidence destruction than of infringing on the right to defense by detaining the suspect."
Previously, the Financial Supervisory Service requested a prosecution investigation after uncovering improper loans totaling 88.2 billion won linked to current and former IBK employees, their spouses, colleagues who joined the bank at the same time, private gatherings, and business partners. Mr. Kim, a former IBK employee, was found to have operated real estate agencies and legal offices under borrowed names. From June 2017 over a period of seven years, he allegedly colluded with or received assistance from his spouse, who works as a loan examiner at the screening center, as well as 28 other acquaintances among IBK employees, to obtain improper loans totaling 78.5 billion won.
During the investigation, prosecutors reportedly discovered that Mr. Cho, a current employee, received money and valuables from Mr. Kim in exchange for granting loans, and therefore requested arrest warrants for both individuals.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
