"Illegal Loan" Sangsangin and Yujunwon Lose Second Trial in Sanction Cancellation Lawsuit

Yoo Jun-won, CEO of Sangsangin Group Photo by Yonhap News

[Asia Economy Reporter Kim Daehyun] Sangsangin Group and CEO Yoo Jun-won filed an appeal against the financial authorities' disciplinary action related to allegations of illegal loans, but they lost again in the appellate court.

On the 14th, the Seoul High Court Administrative Division 11 (Presiding Judges Bae Jun-hyun, Lee Eun-hye, Bae Jeong-hyun) ruled against Sangsangin, Sangsangin Plus Savings Bank, and CEO Yoo in the appeal lawsuit requesting the cancellation of the Financial Services Commission's disciplinary measures regarding illegal and unfair actions by retirees, upholding the first trial's decision.

Previously, the Financial Services Commission imposed a fine of 1.521 billion KRW on Sangsangin for illegally lending 38.17 billion KRW beyond the credit provision limits to individual borrowers.

Additionally, CEO Yoo was suspended from duty for three months on four grounds, including failure to maintain the mandatory credit provision ratio, false reporting, and formally conducting a public auction to allow major shareholders to acquire convertible bonds at a low price. CEO Yoo and others filed a lawsuit in objection to this.

The first trial court judged the Financial Services Commission's disciplinary action to be justified. At that time, the court stated, "Loans to borrowers evaluated as individual business owners were effectively used for personal purposes rather than business purposes, exceeding the loan limits," thereby recognizing the reasons for the Financial Services Commission's disciplinary action.

However, CEO Yoo had previously applied to the court for a suspension of execution to halt the effect of the suspension order, which was granted. CEO Yoo is currently undergoing a first trial at the Seoul Central District Court on related charges.

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