Arrest Warrant Dismissed for Seoyoung Holdings CEO in 'NH Nonghyup Bank Improper Loan Allegations'

Accused of Receiving Improper Loans Worth 20 Billion KRW by Inflating Construction Costs
Court: "Suspicions Remain, But Further Explanation Needed"

The arrest warrant for the head of a company accused of receiving improper loans from NH Nonghyup Bank was dismissed on May 27.

Yonhap News

On this day, Judge Jeong Jaeuk, the presiding judge in charge of warrants at the Seoul Central District Court, rejected the prosecution's request for an arrest warrant for Han Sangkwon, CEO of Seoyoung Holdings, who is under suspicion of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).

Judge Jeong explained, "There is room for dispute regarding Mr. Han's fraud charges, and it is necessary to guarantee his right to defense," adding, "Although a significant part of the embezzlement charges has been substantiated, it appears that most of the embezzled funds have been repaid, which was taken into consideration."

He also determined that, given Mr. Han's family ties and health condition, the risk of flight is low, and that evidence has already been secured through search and seizure. He found that there was insufficient proof that Mr. Han had destroyed evidence or instructed others to do so. Judge Jeong stated, "At this stage, it is difficult to recognize grounds or necessity for detention."

Mr. Han is accused of submitting inflated construction contracts to NH Nonghyup Bank in the process of obtaining a Korea Credit Guarantee Fund certificate, thereby unlawfully securing loan approvals totaling approximately 20 billion KRW from the bank.

The prosecution launched a compulsory investigation in February by conducting searches and seizures at the headquarters of NH Nonghyup Bank, Seoyoung Holdings, and Seoyoung Industrial Development Group, and continued the investigation by conducting another round of searches at Seoyoung Holdings and Seoyoung Industrial Development Group last month.

The allegations of improper loans at NH Nonghyup Bank first surfaced during the 2023 National Assembly audit. At that time, suspicions were raised that NH Nonghyup Bank had lent 10 billion KRW to Seoyoung Holdings even before the Korea Credit Guarantee Fund had issued its guarantee.