Democratic Party Lawmaker's Son Under Custody Review for 20 Billion Won Fraudulent Loan Case

A, the CEO of the Korean Medicine Clinic network company Gwangdeok Anjeong, who is accused of a massive fraudulent loan, faced the possibility of detention on the 15th. A is the son of a current member of the National Assembly from the Democratic Party of Korea.

[Image source=Yonhap News]

At 10:40 a.m. that day, Judge Yoo Chang-hoon, in charge of warrants at the Seoul Central District Court, conducted a pre-arrest suspect interrogation (warrant hearing) for A and B, the company's financial director.

When A and B appeared at the court for the warrant hearing, they did not respond at all to reporters' questions such as 'whether they admit the charges' and 'where the money obtained through false loans was spent,' and immediately entered the courtroom. The decision on their detention is expected to be made later that night or early the next morning.

A and others are accused of falsely creating balance certificates worth around 1 billion KRW for about 30 Korean medicine doctors who wanted to open clinics since around 2019, and through these, obtaining loans worth around 20 billion KRW from institutions such as the Korea Credit Guarantee Fund.

The Korea Credit Guarantee Fund issues guarantees that allow loans up to 1 billion KRW if the applicant has 1 billion KRW in equity capital through the 'Pre-Startup Guarantee System.' The prosecution believes that A and others abused this system.

Gwangdeok Anjeong, where A and others serve as executives, was established in 2017. The company is known to operate 42 franchise Korean medicine clinics and Korean medicine hospitals nationwide.

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