Embezzlement in the 'Secondary Financial Sector'... Saemaeul Geumgo Employee Embezzled 4 Billion Won Over 16 Years (Comprehensive)

Indicted for Embezzlement under Special Act... Unable to Repay 1.1 Billion Won
Police Conduct Additional Investigation Including Accomplices

[Asia Economy Reporter Jang Sehee] An employee at Saemaeul Geumgo, a secondary financial institution, who embezzled about 4 billion KRW from customer deposits, has been arrested by the police.

On the 25th, the Songpa Police Station in Seoul announced that they have booked and are investigating Mr. A, a man in his 50s and an employee of Saemaeul Geumgo, on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes.

Mr. A, who has worked for over 30 years at the Central Saemaeul Geumgo headquarters located in Songpa-gu, Seoul, is suspected of embezzling a total of about 4 billion KRW from 2005 until last year. Among this amount, 1.1 billion KRW has not yet been repaid.

It was confirmed that Mr. A, who has worked at the Central Saemaeul Geumgo in Songpa-gu for over 30 years, embezzled customer deposits and insurance product subscription fees. He committed the crime using a "Ponzi scheme" method, paying maturing existing customers with deposits from new customers. At that time, it is known that there were five employees working at the branch.

He reportedly turned himself in to the police after several employees at private companies such as Woori Bank were caught for embezzlement recently. Saemaeul Geumgo recently imposed disciplinary action on Mr. A and launched an internal audit.

Meanwhile, the police stated, "Mr. A testified that he committed the crime together with his superiors, and an investigation into accomplices including the superiors is underway."

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