'10 Billion Illegal Loan → 13 Years Fugitive in China' Former Saemaeul Geumgo Executive Sentenced to 7 Years in Prison

[Asia Economy Reporter Kim Daehyun] A man in his 60s who used false documents to carry out various embezzlement-related loans at Saemaeul Geumgo and stayed in China for over 10 years to avoid punishment has been sentenced to prison.

According to the court on the 26th, the Criminal Division 33 of the Seoul Central District Court (Presiding Judge Noh Hoseong) recently sentenced Mr. A (66, male), who was indicted on charges including embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, to 7 years in prison.

Previously, Mr. A, who was the executive director of Saemaeul Geumgo in Dongjak-gu, Seoul from 2005 to 2007, took out loans amounting to 3.78 billion KRW under borrowed names exceeding the single borrower loan limit for personal business funds. In addition, from 2001 to 2007, Mr. A conducted loans in a similar manner for four others besides himself, executing a total of 33 loans amounting to 10.45 billion KRW, causing financial damage to Saemaeul Geumgo and was prosecuted on related charges.

During this process, he used so-called 'development appraisal reports' and 'desk appraisal reports,' which cannot be used for real estate collateral loans at financial institutions, and provided real estate with insufficient collateral value as security to Saemaeul Geumgo, according to investigations.

Mr. A was suspended from his position on August 31, 2007, and fled to China on November 15 of the same year. After staying there for 13 years, he was deported from China last November and re-entered South Korea.

The court pointed out, "The defendant, as an executive director, had considerable internal authority and was highly trusted externally. He actively used his position to commit each crime as if the falsely prepared documents were legitimate business, causing significant damage to Saemaeul Geumgo, other financial institutions, and individual victims. He also fled abroad to avoid criminal punishment."

It added, "However, considering that he has no prior criminal record, acknowledges each crime and responsibility, that some of the criminal proceeds were acquired by third parties, and that some of the related loans have been partially recovered through repayment or collateral execution by Saemaeul Geumgo."

Mr. A appealed the first trial verdict.

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