A behind-the-scenes deal worth 550 million KRW led to three arrests and three others being charged without detention.
An executive at a credit cooperative and others were caught receiving billions of won for facilitating the extension of a loan for a regional housing cooperative.
On the 23rd, the Anti-Corruption and Economic Crimes Investigation Unit of the Busan Metropolitan Police Agency announced the arrest and detention of Mr. A, an executive in his 50s from a local credit cooperative in Busan, Mr. B, another executive from a different cooperative in his 50s, and Mr. C, a law office manager in his 50s, on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes. Additionally, the cooperative’s head and the agency handling its affairs were charged without detention.
Mr. A and Mr. B are accused of accepting 280 million KRW from Mr. C in exchange for assisting in extending a loan for the housing cooperative. Mr. C is suspected of coordinating the loan extension and pocketing 550 million KRW from the cooperative.
According to the police, Mr. C, who worked as a manager at a law office and was the brother of the agency’s representative, received a request in March 2023 from the cooperative to persuade the credit union to extend the loan as its repayment deadline was approaching. Mr. C reached out to Mr. A, an acquaintance, who then introduced him to Mr. B, a person with influence in the credit cooperative industry in Busan.
Mr. B accepted Mr. C’s request and mediated with a credit cooperative, leading the main financial institution to extend the loan by one year. Mr. C received 550 million KRW from the cooperative for his role in the extension, paying 280 million KRW to Mr. A, who then passed on 25 million KRW to Mr. B.
In a bid to recover illicit gains, the police applied for a pre-indictment preservation order for properties and assets worth about 855 million KRW owned by the suspects, which the court approved.