Prosecutors Indict 7 Including Brothers' Accomplices in Woori Bank 70.7 Billion Won Embezzlement Case

Woori Bank [Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Seven people involved in the embezzlement of 70.7 billion KRW of company funds by Woori Bank employee Jeon and his brother have been collectively brought to trial.

The Crime Proceeds Recovery Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lim Se-jin) announced on the 21st that eight people were booked on charges including violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (concealment of criminal proceeds). Securities company employee Noh (41) was arrested and indicted, while six family members and acquaintances of the Jeon brothers were indicted without detention. One other person remains under investigation.

The Jeon brothers are accused of embezzling a total of 70.7 billion KRW over nine years, starting in March 2012 with the embezzlement of 1.15 billion KRW held by Woori Bank to repay their own and their family's debts. The embezzled funds included convertible stocks held by Woori Bank and workout-related funds. Their ability to commit the crime over a long period was due to money laundering using nominee accounts.

In this process, securities company employee Noh assisted the Jeon brothers. From May 2012 to last April, Noh opened 11 nominee securities accounts for them. The Jeon brothers conducted about 4,000 stock trades and option transactions using these accounts. It was found that Noh knowingly tolerated the illegal funds for business performance purposes. In return, Noh received 440 million KRW from the company as incentives.

Including Noh, seven people such as the Jeon brothers' parents and acquaintances knowingly received a total of 8.998 billion KRW from the Jeon brothers between March 2012 and last April, using the funds for debt repayment, business capital, purchase of real estate, vehicles, artworks, and overseas travel expenses.

The prosecution additionally indicted the Jeon brothers on charges of forgery of private documents and obstruction of business. Among the embezzled funds, about 67.4 billion KRW is a contract deposit that Woori Bank must return to Entekhap, an Iranian home appliance company that participated in the sale of the former Daewoo Electronics. In December 2016, Jeon forged and sent nine official documents, including a Woori Bank document requesting that approximately 75 million KRW of loan refund money related to the sale of the former Daewoo Electronics factory site be sent to a paper company he established.

Seoul Central District Prosecutors' Office [Photo by Yonhap News]

In April, when the Jeon brothers' existing accounts were blocked due to creditor seizure, they took over an options account under the name of acquaintance Jo and had Noh attend financial education sessions that Jo was supposed to attend.

The prosecution also applied to the appellate court to amend the indictment to include an additional 9.32 billion KRW of embezzled funds. Furthermore, they recovered and took measures to reclaim 7.4 billion KRW of embezzled money that the Jeon brothers had distributed free of charge to 22 people around them.

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