Signs of Executives and Employees Receiving Hundreds of Millions in Illicit Funds Detected
Compulsory Investigation Launched
The prosecution has detected indications that executives and employees of KB Real Estate Trust and Saemaeul Geumgo received illicit funds amounting to hundreds of millions of won, and on June 9 launched a compulsory investigation.
According to the legal community, the Anti-Corruption Investigation Division 2 of the Seoul Central District Prosecutors' Office (headed by Chief Prosecutor Choi Jaehoon) dispatched prosecutors and investigators on this day to conduct searches and seizures at 11 locations, including KB Real Estate Trust, a Saemaeul Geumgo branch in Seongnam, offices of related companies, and the residences of those involved.
The prosecution is reportedly investigating allegations that executives and employees of KB Real Estate Trust pocketed funds worth several hundred million won in connection with trust contracts and brokered private loans, as well as allegations that executives and employees of the local Saemaeul Geumgo accepted money in connection with loans.
The prosecution has been investigating acts of private interest by employees of real estate trust companies based on a complaint filed by the Financial Supervisory Service. In April, prosecutors also detected indications that current and former employees of Shinhan Asset Trust received funds worth several hundred million won during trust operations, and conducted searches and seizures at their offices and other locations.
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