HUG Suffers 1.32 Billion KRW Guarantee Fee Loss Due to Favoritism Toward Specific Companies

[Asia Economy Reporter Cha Wanyong] It has been revealed that an executive at the headquarters of the Housing and Urban Guarantee Corporation (HUG) granted preferential treatment by raising the credit rating of a specific construction company.

The Ministry of Land, Infrastructure and Transport announced on the 30th that during a comprehensive audit of HUG's overall institutional operations conducted since June 13, it confirmed that the credit rating of a specific construction company was raised without justifiable reasons.

As a result of this preferential treatment, HUG incurred a total loss of 1.32 billion KRW in guarantee fees. The Ministry plans to file criminal charges against the executive who ordered this.

It was also revealed that the headquarters executive who led the misconduct demoted the branch manager to a regional post in a punitive personnel transfer after the sales branch took the position that there were no valid reasons for the credit rating upgrade requested by the specific company.

The Ministry of Land, Infrastructure and Transport plans to continue the audit, judging that the president cannot be exempt from responsibility in addition to the executive involved. They will closely examine whether there were any improper work orders or personnel abuses, and if illegal activities are found, they will hold those responsible accountable through measures such as filing charges and requesting investigations.

Additionally, during the HUG audit process, various issues were identified, including improper operation of the rental deposit guarantee system and the special discount system for excellent customers, delays in returning jeonse deposits, and improper receipt of travel expenses.

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