Yang Moon-seok's 'Evasive Loan' Controversy Spreads... Examining the Saemaeul Geumgo Loan Process

Eldest Daughter's Name Used for Purchase Documents
Daegu Safe to Be Investigated for Loan Approval

Yang Moon-seok, the Democratic Party of Korea candidate for Ansan Gap in Gyeonggi, who is suspected of illicit loan practices at Saemaeul Geumgo, is reported to have submitted purchase documents for goods worth hundreds of millions of won as proof for a business loan. In this regard, the Saemaeul Geumgo Central Association plans to investigate the specific circumstances of the loan process.

Yang Moon-seok, Democratic Party of Korea Candidate for Ansan Gap, Gyeonggi Province
[Image Source=Yonhap News]

According to the Central Association and others on the 31st of last month, Yang purchased an apartment measuring 137.10㎡ (41 pyeong) located in Jamwon-dong, Seocho-gu, Seoul, jointly with his spouse in August 2020. The purchase price at that time was 3.12 billion won.

Eight months later, Yang received a business loan of 1.1 billion won from Daegu Suseong Saemaeul Geumgo under the name of his child. The collateral provided was the Jamwon-dong apartment jointly owned by the couple. With this loan, Yang repaid approximately 630 million won borrowed from a private lender at the time of the apartment purchase, and used the remainder to pay debts such as interim payments to acquaintances.

MG Saemaeul Geumgo logo
[Image source=Yonhap News]

Some have criticized this as an 'illicit loan' because the loan obtained from a financial institution for business purposes was effectively used as housing purchase funds. In the case of business loans, borrowers must prove that the loan was used for business purposes within three months of disbursement. Failure to prove this may result in the loan being recalled.

Yang is reported to have submitted purchase documents for goods worth hundreds of millions of won under his eldest daughter's name as proof of business. However, there are claims that these documents are false, as Yang's eldest daughter left for language training in Canada in October 2021, six months after the Saemaeul Geumgo loan.

On the 30th of last month, Yang posted on Facebook, partially acknowledging the criticism by stating, "Illicit loans deserve criticism," but also questioned, "I cannot remain silent about being accused of fraudulent loans. Has anyone been harmed by our family's loan? Did we intentionally deceive Saemaeul Geumgo?"

On the 1st, the Central Association plans to visit Daegu Suseong Saemaeul Geumgo, which granted the business loan to Yang, to begin an on-site inspection. This inspection will review the entire loan process at the institution, including whether the credit union was aware that the loan funds were used for housing purposes.

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