Intervened in Nonghyup Bank Personnel to Obtain Illegal Loans...
Ji Junseop, Vice President of the National Agricultural Cooperative Federation, Indicted
Prosecution: "Registered Two Family Members and 20 Construction Engineers as Fake Employees to Embezzle Salaries"
Han Sangkwon, CEO of Seoyoung Holdings Co., Ltd., has been indicted on charges of obtaining illegal loans from NH Nonghyup Bank and intervening in personnel matters by abusing his position as the owner of a local media company.
On October 28, the Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (headed by Chief Prosecutor Lee Heechan) announced that Han, along with three executives and employees, has been indicted without detention on charges of fraud and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. Ji Junseop, Vice President of the National Agricultural Cooperative Federation, has also been indicted without detention on charges of obstruction of business.
According to the prosecution, Han, in collusion with the heads of the finance and construction divisions, is accused of inflating construction costs and company revenues when applying for a loan and guarantee for the construction of Seoyoung Holdings' new headquarters between February and March 2023. As a result, he secured approval for a loan of 20.8 billion won from Nonghyup Bank and subsequently received a total of 14.9 billion won in improper loan funds from April 2023 to May 2024.
Han is also reported to have received credit guarantees totaling 10 billion won from the Korea Credit Guarantee Fund between March and September 2023.
Through searches and interviews with relevant parties, prosecutors believe that Han, who owns several affiliates including the regional newspaper Gyeonggi Shinmun and a construction company, leveraged his influence to obtain illegal loans for personal gain.
In addition, Han faces charges of improperly intervening in personnel matters at Nonghyup Bank through Vice President Ji, with the aim of continuing to secure illegal loans.
The prosecution confirmed that between November and December 2023, Han received a request from an employee in charge of Seoyoung Holdings' loan business to be appointed as the head of the loan review department, and relayed this request to Vice President Ji.
The prosecution believes that Han, as the actual owner of Gyeonggi Shinmun, used his connections with senior officials at Nonghyup Bank to have his preferred candidate appointed as head of the bank's loan review department, in order to continue receiving favorable treatment for loans.
Prosecutors also found that, from April 2017 over a period of eight years, Han embezzled a total of 1.63 billion won by registering two family members and 20 construction engineers as fake employees and paying them salaries and other benefits.
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