Prosecutors Indict Chairman Park Cha-hoon Without Detention Despite Two Warrant Rejections... Investigation into Saemaeul Geumgo Corruption Allegations Concludes

42 People Caught, 11 Indicted and Detained
Approximately 15 Billion KRW of Criminal Proceeds Recovered

The prosecution has indicted Park Cha-hoon, the chairman of the Saemaeul Geumgo Central Association, without detention on suspicion of accepting bribes during the fund investment and project financing (PF) loan processes. Following approximately six months of investigation into corruption allegations involving Saemaeul Geumgo, the prosecution has brought a total of 42 individuals (11 detained) to trial, including Chairman Park, and has recovered about 15 billion KRW in criminal proceeds.

On the 8th, Park Cha-hoon, Chairman of the Saemaeul Geumgo Central Association, entered the Seoul Eastern District Court to undergo a pre-arrest suspect interrogation (warrant hearing).
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On the 24th, the 5th Criminal Division (Chief Prosecutor Kim Hae-kyung) and the 6th Criminal Division (Chief Prosecutor Seo Hyun-wook) of the Seoul Eastern District Prosecutors' Office announced that they had indicted Chairman Park without detention on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (accepting bribes, etc.).

The prosecution alleges that from March 2021 to April of this year, Chairman Park received 100 million KRW in cash from the CEO of an asset management company who attracted investment funds for the Saemaeul Geumgo Central Association, and had 50 million KRW in attorney fees paid on his behalf. Park is also accused of receiving 78 million KRW in cash and 22 million KRW in attorney fees from three full-time directors of the Saemaeul Geumgo Central Association under the pretext of organizational management expenses, as well as accepting two gold seals worth approximately 8 million KRW from a subsidiary CEO as a reward for appointment.

On the 3rd, the prosecution detected evidence of Park’s acceptance of bribes and summoned him for questioning as a suspect. On the 4th, they requested an arrest warrant on charges of accepting bribes under the Act on the Aggravated Punishment of Specific Economic Crimes. However, the court dismissed the warrant on the 8th, citing the need to guarantee the right to defense. The prosecution filed a second arrest warrant request on the 16th on the same charges, but it was again dismissed on the grounds that "a substantial amount of evidence that the investigative agency can secure has been collected, and there is little risk of evidence destruction or flight."

Additionally, the prosecution indicted a total of 12 Saemaeul Geumgo executives and employees, including regional credit union chairpersons (5 detained). They are suspected of accepting bribes or providing illegal benefits to Chairman Park in exchange for loans or fund investments. Furthermore, eight employees (2 detained) of securities firms, banks, and capital companies who accepted bribes for loan brokerage, 11 loan brokers (4 detained), and 10 individuals including operators of asset management and real estate development companies who offered bribes to financial company employees were also brought to trial.

A prosecution official stated, “Given criticisms that external management and supervision of Saemaeul Geumgo, as well as internal monitoring systems, did not function properly, there is a need to strengthen both internal and external management and supervision. We will do our best to ensure that the defendants receive sentences commensurate with their crimes. We will continue to crack down on corruption crimes committed by employees of financial institutions like this case.”

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