On the 3rd, it was confirmed that two employees, including a former branch manager of the Korean Federation of Community Credit Cooperatives (KFCC) in Seongnam, Gyeonggi Province, were arrested last month on charges of receiving hundreds of millions of won in cash and valuables in exchange for providing project financing (PF) loans. A broker who arranged the loans was also arrested.
According to legal sources, on the 20th of last month, Nam Se-jin, a warrant-issuing presiding judge at the Seoul Central District Court, issued arrest warrants for two employees, including former Korean Federation of Community Credit Cooperatives (KFCC) branch manager A, who are accused of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (bribe-taking), among other charges. An arrest warrant was also issued for loan broker B on charges of brokerage bribe-taking under the same law. Prosecutors are said to be preparing to indict the three under arrest as early as this week.
A and others are accused of receiving hundreds of millions of won in cash and valuables from company officials in return for favoring companies that needed PF loans. The Second Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office (headed by Prosecutor Kim Bong-jin) is said to have detected signs of wrongdoing at the Korean Federation of Community Credit Cooperatives (KFCC) while investigating a case in which KB Real Estate Trust employees allegedly pocketed hundreds of millions of won during the process of entering into trust agreements and arranged private financing for companies in need of loans.
Meanwhile, prosecutors plan to wrap up soon their investigation into alleged misconduct by current and former employees of real estate trust companies, including KB Real Estate Trust.