Saemaeul Geumgo Central Association, Disciplinary Action Approved for 4 Executives Related to Yang Munseok's Improper Loan

[Image source=Yonhap News]

The Saemaeul Geumgo Central Association has decided to discipline officials of the Daegu Suseong Saemaeul Geumgo related to the illicit loan practices involving Yang Moon-seok, a member of the Democratic Party of Korea.

According to the Saemaeul Geumgo Central Association on the 30th, a disciplinary committee was held on the 25th and 26th for four executives and employees of the Suseong Saemaeul Geumgo. The level of discipline and specific reasons will be announced on the Central Association's website by the end of September.

They are known to have been involved when Representative Yang took out a loan of 1.1 billion KRW in 2021 under the name of his university student daughter. The 1.1 billion KRW loan, taken out under the pretext of business operating funds, was used to repay 580 million KRW borrowed from a private lending company during the process of purchasing an apartment in Seocho-gu, Seoul, for 3.12 billion KRW in November 2020, as revealed by the prosecution investigation and others.

Since each Saemaeul Geumgo corporation is an independent entity, the disciplinary decisions made by the Central Association's disciplinary committee are not automatically applied. Instead, each individual Geumgo must hold a board meeting to approve the disciplinary measures. While the level of discipline may be adjusted during these board meetings, most decisions are approved as is.

Meanwhile, earlier, the Financial Supervisory Service and the Saemaeul Geumgo Central Association conducted a joint inspection of the Suseong Saemaeul Geumgo and confirmed misuse of funds in about 40 out of 53 housing mortgage loans to individual business owners. Following this, the Central Association conducted a comprehensive inspection of all Geumgo nationwide, which is currently in its final stages. The Central Association plans to implement measures at its level similar to those announced by the Financial Supervisory Service once the latter completes its inspection and announces the results.

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