Prosecution Indicts Current and Former Saemaeul Geumgo Employees for Embezzling 4 Billion Won

Three current and former employees of Saemaeul Geumgo have been indicted on charges of illegally paying and embezzling fees related to real estate project financing (PF) loans.

On the 13th, the Criminal Division 6 of the Seoul Eastern District Prosecutors' Office (Chief Prosecutor Seo Hyun-wook) announced that they had arrested and indicted Mr. No, a former manager of Saemaeul Geumgo Branch A, and Mr. Park, a former employee of the Saemaeul Geumgo Central Association, on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust) and the Act on the Regulation and Punishment of Criminal Proceeds Concealment. Mr. Oh, an employee of Saemaeul Geumgo Branch B, was indicted without detention.

They are accused of embezzling a total of 3,969.4 million KRW from seven PF loans between December 2021 and September of last year. Mr. No, who was in charge of the real estate PF lending team at Saemaeul Geumgo, is reported to have illegally paid fees to a consulting firm operated by the families of Mr. Park and Mr. Oh when executing a PF loan in April last year aimed at developing the Baekseok area in Cheonan.

It is known that they committed these crimes to recover losses from a failed real estate investment in May 2021. The criminal proceeds were used for purchasing an apartment (1.7 billion KRW), buying luxury vehicles (a camping car for 150 million KRW, a Lamborghini deposit of 25 million KRW), and golf expenses.

On the 28th of last month, the prosecution conducted raids on eight locations, including the Saemaeul Geumgo Central Association and branches in Samseong-dong, Gangnam-gu, Seoul, and Korea Investment & Securities, the lead underwriter of the Baekseok PF loan.

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