Prosecution Re-summons Yoo Jun-won, Key Figure in 'Sangsangin Group Investigation'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution investigating Sangsangin Group over preferential loan allegations related to former Justice Minister Cho Kuk's 'family fund' has summoned Yoo Jun-won, CEO of Sangsangin Group (46), again.

The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Hyung-geun) called Yoo in the morning of the 19th for questioning as a suspect. Yoo had also appeared for investigation in January.

Sangsangin Group affiliates, Sangsangin Savings Bank and Sangsangin Plus Savings Bank, are accused of granting preferential loans to companies acquired by funds operated by relatives of former Minister Cho and providing personal loans exceeding legal limits (violations of the Capital Markets Act and Mutual Savings Banks Act).

The prosecution began the investigation last November by conducting raids on Sangsangin Savings Bank and others, following a request from financial authorities.

In July 2018, Sangsangin Savings Bank lent 10 billion KRW to WFM, a secondary battery company, secured by convertible bonds (CB). WFM was acquired by Korink Private Equity (Korink PE), a private equity fund management company led by Cho Beom-dong, former Minister Cho's fifth cousin once removed.

Because of this, suspicions arose that Sangsangin Group, which was attempting to acquire Golden Bridge Securities at the time, executed the loan expecting to resolve issues related to the major shareholder suitability review from former Minister Cho's side.

In June last year, Sangsangin Savings Bank also lent 2 billion KRW to Korink PE and later recovered it. Sangsangin Plus Savings Bank, an affiliate of Sangsangin Savings Bank, reportedly lent 2 billion KRW to WFM in August last year, secured by 1.1 million shares.

The prosecution is also examining allegations that Sangsangin Savings Bank and Sangsangin Plus Savings Bank provided personal loans exceeding legal limits using WFM CBs and other securities as collateral.

Meanwhile, the Financial Supervisory Service also views that Sangsangin Savings Bank violated credit provision limit regulations under the Mutual Savings Banks Act. Under current law, loans can only be extended within 20% of the bank's own capital.

This content was produced with the assistance of AI translation services.