Lee Bok-hyun, Yang Moon-seok Illegal Loan Inspection "Decided Alone"

Controversy Over Election Interference: "A Principled Decision"
"Business Loans for Home Purchase Purposes Are Illegal"

Lee Bok-hyun, Governor of the Financial Supervisory Service

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), stated on the 3rd that the inspection related to the allegations of illicit loans involving Yang Moon-seok, the Democratic Party candidate for Ansan Gap, Gyeonggi Province, was "a decision made alone."

After the 'MOU Ceremony for Digital Financial Cooperation between the FSS and Naver' held at the FSS on the same day, Governor Lee told reporters, "I made the decision alone without consulting anyone such as the Financial Services Commission, Ministry of the Interior and Safety, or the Presidential Office."

Governor Lee explained, "Given the sensitive timing, I was cautious about matters that might not be the FSS's business, and I felt uncomfortable. Knowing that joint inspections would begin next week and that the National Credit Union Federation of Korea would be working hard, from next week onward, regardless of who holds legal responsibility, it becomes a shared responsibility."

He added, "If I consulted with anyone, it might have caused a burden, and since the FSS must take responsibility, I deliberated alone and gave my opinion to the National Credit Union. I take responsibility for right and wrong."

The FSS sent an opinion to the National Credit Union the day before, offering to support inspection personnel if necessary. This proactive move by the FSS, which does not have direct supervisory authority over the National Credit Union, led some to speculate that it was aimed at the April 10 general elections. However, the FSS signed an agreement in February with the Ministry of the Interior and Safety and the Financial Services Commission regarding supervision of the National Credit Union.

Regarding the controversy over election interference, Governor Lee said, "I made the decision based on principles. Having served in public office for over 20 years, I have faced various misunderstandings. If it were not a sensitive situation, I would have deployed many personnel very quickly."

He also left open the possibility that the inspection results related to Yang's illicit loans could be announced before the general election. Governor Lee said, "In 2022, we inspected similar mortgage loans at savings banks, so we dispatched five personnel well-versed in the work. If possible, we aim to deliver results within five days without extending the period." He added, "However, at this stage, I cannot say whether results can be produced by reviewing only one or two cases."

Furthermore, regarding Yang's illicit loans, he emphasized, "Business loans for the purpose of home ownership are not illicit but clearly illegal. It is not a gray area; it is either legal or illegal."

Meanwhile, according to the National Credit Union Federation of Korea, an on-site inspection of the Daegu Suseong National Credit Union, where allegations of illicit loans involving Yang's child were raised, has been underway since the 1st, and from that day, five FSS inspection personnel were also deployed. Yang purchased an apartment worth approximately 3.12 billion KRW in Jamwon-dong, Seocho-gu, Seoul, in August 2020. He bought the apartment using a 630 million KRW loan from a private lender and borrowed money from acquaintances. Eight months later, Yang's daughter took out a 1.1 billion KRW business loan from the Suseong National Credit Union to repay the private lender's loan and personal debts. Yang's method resembled illegal working loans that financial authorities have been cracking down on, sparking controversy.

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