Prosecutors Conduct Search and Seizure on Former Taekwang Executives Over Alleged 15 Billion Won Improper Loan Solicitation

The prosecution has launched a forced investigation into Kim Giyu, former chairman of the Taekwang Group Management Council, who is accused of soliciting an improper loan worth around 15 billion won.

The Criminal Division 4 of the Seoul Western District Prosecutors' Office (Chief Prosecutor Yoo Hyoje) sent investigators on the 24th to conduct a search and seizure at the residence and office of former Chairman Kim, who is suspected of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

Earlier, the prosecution began the investigation after a law firm responsible for external audits of Taekwang Group detected signs of corruption involving former Chairman Kim and filed a complaint in November of last year.

Former Chairman Kim is accused of using his position as chairman of the Taekwang Group Management Council to solicit a loan of approximately 15 billion won in August last year by requesting the CEOs of two savings banks affiliated with the group to approve the loan, following a request from the CEO of real estate development company A, whom he knew well.

At the time, the CEO of company A and its related companies were already burdened with debts amounting to about 35 billion won, and the collateral value was insufficient, making it difficult to obtain the loan. Despite the savings banks' credit review team submitting an opinion to the credit review committee stating that "the business risk is high," the loan was granted due to former Chairman Kim's solicitation.

Additionally, former Chairman Kim is also accused of causing approximately 2.6 billion won in damages by receiving a solicitation from the de facto representative of demolition company B and registering Tisis, a group affiliate where he is CEO, as a subcontractor for part of the demolition work contracted from Taekwang Industry and others, thereby inflating demolition costs.

There are also allegations that during the disposal process of waste materials generated from the demolition work, a proposal was drafted to sell the materials to company B at a price about 3.2 billion won lower than the market price, thereby obstructing the business of Taekwang Industry and others.

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