FSS detected, prosecution investigation begins… Focus on whether employees involved in unfair lending were derelict in duty
‘Son Tae-seung, former chairman of Woori Financial Holdings, is under investigation by prosecutors for alleged unfair loans amounting to 35 billion KRW granted to a relative. Prosecutors have conducted searches at Woori Bank headquarters and other related offices in Seoul.’
‘According to legal circles on the 27th, the Financial Investigation 1 Division of the Southern District Prosecutors’ Office (led by chief prosecutor Kim Soo-hong) initiated searches on Woori Bank headquarters and eight other offices, as well as four residential locations related to the case. Prosecutors are focusing on whether employees suspected of granting unfair loans were derelict in their duty.’
‘This investigation into unfair loan allegations began after the Financial Supervisory Service identified the issue earlier this month. FSS reported that Woori Financial and Woori Bank deliberately failed to report the relevant loan transactions to financial authorities.’
‘According to the FSS, Woori Bank granted a total of 61.6 billion KRW in loans to companies operated by Son’s relatives from April 2020 to January this year. Among these, 57% (35 billion KRW) were found to have been granted without following standard loan criteria or procedures, such as omitting document verification, improper collateral or guarantees, violation of loan approval process, and inadequate review for unauthorized purposes.’
‘In particular, the loan amount reportedly surged after Son gained influence within the bank. Son took office as Woori Bank’s president in 2017, then served as chairman of Woori Financial and Woori Bank from January 2019, until he retired in March last year. A significant portion of the loans were handled under the direction of Center Manager A at the Seolleung Financial Center, who maintained a trading relationship with Son’s relatives.’
Translated text was shortened due to length constraints.