Prosecutors Conduct Search and Seizure at Sangsangin Savings Bank... Investigation Resumes After 5 Months

Jeong Gyeong-sim, wife of Justice Minister Cho Kuk and a professor at Dongyang University, was summoned privately for the fifth time by the prosecution on the 14th for investigation. The photo was taken at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul on the same day. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Song Seung-yoon] On the 3rd, the prosecution conducted a search and seizure of SangSangIn Savings Bank, an affiliate of the SangSangIn Group, which has been implicated in a private equity fund scandal involving former Minister of Justice Cho Kuk's family. This is the first search and seizure in five months since November last year.

The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Hyung-geun) carried out the search and seizure from the morning at about 20 locations, including the headquarters and offices of SangSangIn Savings Bank, securing PC hard drives and work-related documents.

The SangSangIn Group is accused of violating the Mutual Savings Banks Act by executing personal loans exceeding legal limits using convertible bonds (CB) of its affiliates, SangSangIn Savings Bank and SangSangIn Plus Savings Bank, as collateral.

SangSangIn Savings Bank is also suspected of being involved with Coring Private Equity (Coring PE), the fund management company of former Minister Cho Kuk's family. In July 2018, SangSangIn Savings Bank lent 10 billion KRW to WFM, a secondary battery company, using convertible bonds as collateral. WFM is a company acquired by Coring PE, whose general representative was Cho Beom-dong, a fifth cousin of former Minister Cho Kuk.

The prosecution began a full-scale investigation in November last year after receiving investigation requests from the Financial Services Commission and the Financial Supervisory Service. The Financial Supervisory Service had previously issued institutional warnings to SangSangIn Plus Savings Bank and suspended the duties of Yoo Jun-won, CEO of SangSangIn Group. The prosecution summoned Yoo as a suspect for questioning in January.

Following the analysis of evidence secured through the search and seizure, the prosecution plans to review the direction of Yoo's further summons and whether to request an arrest warrant.

This investigation was originally handled by the Tax Crime Investigation Division of the Seoul Central District Prosecutors' Office. However, due to an organizational restructuring at the end of January, the division was abolished and the case was reassigned to the Anti-Corruption Investigation Division 1.

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