Prosecution Service Indicts Branch Managers of Korean Federation of Community Credit Cooperatives for Receiving Large Sums in Illegal Loans

[Financial News] Branch managers of the Korean Federation of Community Credit Cooperatives who received hundreds of millions of won in exchange for arranging Project Finance (PF) loans will stand trial.
According to legal sources on the 6th, the Second Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office (headed by Kim Bong-jin) indicted former branch managers A and B of the Korean Federation of Community Credit Cooperatives on the 5th on charges of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (bribery, etc.). Another former branch manager, C, who also accepted money, was indicted without detention on the same charge.
The three are accused of receiving approximately 500 million won in exchange for arranging PF loans worth about 200 billion won while serving as branch managers in Seongnam, Gwangmyeong, and other areas in Gyeonggi Province.
Additionally, the prosecution indicted loan broker D on charges of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (bribery and brokerage bribery, etc.) for providing money to the three branch managers and receiving about 3.2 billion won from a development company as compensation for arranging PF loans.
A representative of the Prosecution Service stated, "We have strictly punished the defendants who abused their positions as branch managers to accept large sums of money and negatively impacted the financial soundness of the Korean Federation of Community Credit Cooperatives, which serves the public, through indiscriminate PF loans. We will continue to crack down on financial crimes that threaten the livelihoods of ordinary citizens, such as bribery and bad loans by financial institution employees."

kyu0705@fnnews.com Kim Dong-gyu Reporter