Granted PF Loans for Bribes Worth 1 Billion Won... Former Saemaul Geumgo Branch Managers Indicted

Approved 200 Billion Won in Loans While Working in Gyeonggi Province
Broker Who Pocketed 3.2 Billion Won Also Indicted

Former branch managers of Saemaul Geumgo have been indicted after granting loans worth approximately 200 billion won at the request of a broker and receiving several hundred million won in kickbacks.

The Seoul Central District Prosecutors’ Office’s Anti-Corruption Investigation Division 2 (headed by Prosecutor Kim Bongjin) announced on the 6th that former Saemaul Geumgo branch managers, referred to as A and B, have been arrested and indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (bribery, etc.).

From 2019 to 2023, while serving as branch managers at Saemaul Geumgo branches in Seongnam, Gwangmyeong, and other areas in Gyeonggi Province, A and B allegedly approved real estate project financing (PF) loans totaling around 200 billion won and, in return, each received approximately 500 million won in bribes from a loan broker, referred to as C.

It was found that C received approximately 3.2 billion won in money and valuables from a development company as compensation for arranging these loans. Prosecutors have also arrested and indicted C on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (bribery and brokerage bribery).

Another former branch manager, referred to as D, who received money along with A and B, has also been indicted on bribery charges. However, since D received a relatively small amount of about 16 million won, D was indicted without detention.

The prosecution stated, "The defendants abused their positions as branch managers to receive large sums of money and caused indiscriminate PF loans, thereby undermining the financial soundness of Saemaul Geumgo, which serves as a financial institution for ordinary citizens."

The prosecution added, "In addition to this case, we are investigating allegations of illegal loans at financial institutions such as trust companies," and emphasized, "We will strictly crack down on financial corruption that threatens the livelihoods of ordinary citizens."