25 Ghost Companies Established for 26 Billion KRW Illegal Loans... Former Heads of All Technology Credit Guarantee Fund Branches and Businessman Arrested

Investigation Underway for Over 30 People Involved in Assisting Corporate Establishment

Seoul Metropolitan Police Agency file photo / Photo by Moon Honam munonam@

[Asia Economy Reporter Lee Gwan-joo] A group of businessmen who established shell companies and used technology guarantee certificates obtained through them to secure loans amounting to 26 billion won for personal use have been caught by the police. A former branch manager of the Korea Technology Finance Corporation, who received money and entertainment in exchange for assisting their illegal loans, has also been arrested.

The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit announced on the 22nd that businessman Mr. A was arrested on charges of fraud and mediation of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, and former branch manager Mr. B of the Korea Technology Finance Corporation was arrested on charges of breach of trust and acceptance of breach of trust.

Mr. A is suspected of using 25 shell companies from 2012 to January 2019 to obtain technology guarantee certificates and secure loans totaling 26 billion won, which he then used for personal expenses. Former branch manager Mr. B is accused of receiving money and entertainment worth hundreds of millions of won as compensation for assisting Mr. A's illegal loans. It is reported that Mr. B was dismissed in January of this year.

The police view about 30 people, including the representatives of the shell companies who helped Mr. A establish them, as accomplices in fraud and plan to transfer the case to the prosecution once investigations are completed.

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