Meritz Securities Launches Internal Audit
After Tip-Off Reveals Irregularities
Former employees of Meritz Securities and a private developer have been handed over to the prosecution while in custody, after exchanging money and valuables in return for facilitating a project financing (PF) loan worth tens of billions of won.
On July 3, the Seodaemun Police Station in Seoul announced that it had referred former Meritz Securities executive A and the CEO of a logistics warehouse development company, B, to the prosecution under arrest, on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (bribery and breach of trust).
B is accused of bribing A, who was then the head of PF loan sales at Meritz Securities, in order to secure a 18 billion won loan through Meritz Securities PF financing for the construction of a logistics warehouse in Pyeongtaek, Gyeonggi Province. However, as the profitability of the project declined, additional loans were not approved. B then reported the transaction to Meritz Securities, which led to the exposure of their dealings.
Meritz Securities conducted an internal audit and dismissed A in July last year, and requested a police investigation into both A and B. The police arrested both individuals early last week, and after further investigation, referred them to the prosecution.
A representative from Meritz Securities stated, "We immediately launched an audit upon receiving the report, as this was an act of individual misconduct," and added, "We are also completing audits on other possible irregularities."
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