Branch Manager, Appraiser, and Brokers Indicted for 8.5 Billion KRW Fraudulent Loans in Gwangju
A branch manager of a livestock cooperative, an appraiser, and several brokers have been indicted for executing fraudulent loans totaling approximately 8.5 billion KRW through false appraisals and forged documents.
The Gwangju District Prosecutors' Office Anti-Corruption and Violent Crimes Division (Chief Prosecutor Cho Jungho) announced on July 24 that it had indicted 10 individuals, including branch manager A of a local livestock cooperative in Gwangju, on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes, among others. Two of the accused are in custody.
A is accused of conspiring with internal staff to forge supporting documents such as sales contracts and bank transaction statements, and of colluding with appraisers to create false appraisal reports, thereby fraudulently executing loans totaling approximately 8.5 billion KRW. In return, A reportedly received 150 million KRW.
Brokers were also involved in the fraudulent loan process. After arranging the loans, they received money and valuables as brokerage fees, and it was revealed that loan borrowers provided not only cash but also golf resort memberships.
The prosecution stated, "We have taken measures to preserve the proceeds of crime amounting to 150 million KRW," and added, "We will respond strictly to financial crimes that disrupt the financial order and threaten the livelihoods of ordinary citizens."
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