Gold Bars Scatter Behind Officetel... Gyeongnam Bank Employee Embezzles 130 Billion Won

Arrested and Indicted on Embezzlement Charges Including Loan Principal and Interest Repayment Funds
Repaid Money by Circular Borrowing... Actual Damage Amount 50 Billion Won

The head of the Investment Finance Department at BNK Gyeongnam Bank has been arrested and indicted on charges of embezzling 130 billion won of company funds.

Cash found at Lee's hideout.
[Photo by Seoul Central District Prosecutors' Office]

On the 8th, the Crime Proceeds Recovery Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Im Se-jin) announced that Lee (51), the head of the Investment Finance Department at BNK Gyeongnam Bank, who is accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), has been indicted while in custody.

According to the prosecution, Lee embezzled a total of 138.7 billion won from loans executed by forging repayment funds and request documents from August 2016 to July last year.

Specifically, from August 2016 to October 2021, Lee embezzled 69.9 billion won in principal and interest repayment funds of loans for three real estate project financing (PF) project operators held by Gyeongnam Bank. During this process, Lee forged withdrawal slips under the names of the project operators 11 times and is known to have transferred the embezzled money to accounts under the names of family members or paper companies.

Additionally, from July 2019 to July last year, Lee forged documents to make it appear as if two real estate PF project operators requested additional loans and arbitrarily executed loans. Through this method, Lee embezzled 68.8 billion won.

The process by which Lee embezzled 69.9 billion KRW of principal and interest repayment funds from PF loans.
[Photo by Seoul Central District Prosecutors' Office]

Lee is also accused of hiding a total of approximately 14.7 billion won worth of valuables, including 101 gold bars, 4.5 billion won in cash, and 41 million won in gift certificates, in three officetels borrowed under false names after laundering the funds to prepare for fleeing when the financial authorities discovered the crime.

The prosecution conducted a search of Lee’s hideout, seized valuables, and through the court, also secured seizure preservation of assets worth approximately 2.2 billion won held by the paper companies. It was also confirmed that Lee repaid money using a "ponzi scheme" method to conceal the embezzlement, and the prosecution explained, "Gyeongnam Bank estimates the actual damage to be about 50 billion won."

The prosecution plans to investigate whether Lee, who was arrested last month while on the run, and his accomplice Hwang (52), an employee of Korea Investment & Securities who was also arrested, were involved in additional crimes and the whereabouts of the embezzled funds.

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