On July 3, prosecutors investigating allegations of improper loans by NH Nonghyup Bank launched a compulsory investigation into the headquarters of the National Agricultural Cooperative Federation (Nonghyup).
The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office, led by Chief Prosecutor Lee Jundong, announced that it had been conducting a search and seizure of several offices at the Nonghyup headquarters since the morning in connection with allegations of improper loans by Nonghyup Bank.
Prosecutors are investigating allegations that Nonghyup Bank approved loans totaling around 20 billion won to Seoyoung Holdings based on contracts with inflated construction costs submitted by the company.
In February, prosecutors previously conducted searches and seizures at the headquarters of Nonghyup Bank, Seoyoung Holdings, and Seoyoung Industrial Development Group.
In May, prosecutors sought an arrest warrant for Han Sangkwon, CEO of Seoyoung Holdings, in an attempt to secure his custody. However, the court rejected the request, stating that there was room for dispute over the criminal allegations and that it was necessary to guarantee his right to defense.
Since then, prosecutors have continued their investigation, including launching another search and seizure at the headquarters of Nonghyup Bank last month.
The allegations of improper loans by Nonghyup Bank were first raised during the 2023 National Assembly audit. At that time, suspicions emerged that Nonghyup Bank had extended a loan of 10 billion won to Seoyoung Holdings even before a guarantee was issued by the Korea Credit Guarantee Fund.
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