Prosecutors said on the 28th they indicted National Agricultural Cooperative Federation Vice Chairman Ji Jun-seop and Seoyoung Holdings Chairman Han Sang-kwon without detention on charges of involvement in illegal loans worth about 10 billion won.
On the day, the Seoul Central District Prosecutors' Office Anti-Corruption Investigation Division 1 (headed by Director General Lee Hee-chan) indicted National Agricultural Cooperative Federation Vice Chairman Ji Jun-seop without detention on a charge of obstruction of business. They also indicted without detention Seoyoung Holdings Chairman Han Sang-kwon and two employees of the company on a charge of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).
According to prosecutors, Han and company employees were found to have inflated construction costs and falsely listed the contractor when applying to NongHyup Bank for a loan for new headquarters construction in Feb.–Mar. 2023. NongHyup Bank, deceived by the false documents, approved a 20.8 billion won loan and was found to have lent 14.9 billion won from April of the same year to March of this year.
Han is also accused of personnel solicitation to National Agricultural Cooperative Federation Vice Chairman Ji Jun-seop. It was revealed that Han asked Vice Chairman Ji to ensure that NongHyup Bank employee A, who handled Seoyoung Holdings' loan, could be appointed as Director General of the loan screening department. Prosecutors determined that although Vice Chairman Ji had no authority to intervene in NongHyup Bank personnel matters, he exerted influence over NongHyup Bank to have A appointed as Director General of the loan screening department.
Prosecutors viewed that Han used his status as owner of Gyeonggi Ilbo, a daily newspaper in the capital region, to exert influence over Vice Chairman Ji. Han is the largest shareholder of Seoyoung Industrial Development, the parent company of Gyeonggi Ilbo.
Allegations of improper loans at NongHyup Bank were first raised at the 2023 National Assembly audit. At the time, it was claimed at the audit that NongHyup Bank lent 10 billion won to Seoyoung Holdings before the Korea Credit Guarantee Fund (KODIT) issued its guarantee.