Prosecutors Conduct Search and Seizure at NongHyup Bank over 'Preferential Loan Suspicion'

Prosecutors have launched a forced investigation into a real estate development company and NongHyup Bank, which are suspected of receiving preferential loans worth tens of billions of won.

The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office has been conducting a search and seizure of NongHyup Bank and real estate development company A since the morning of the 6th on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. The company is suspected of receiving illegal loans from NongHyup Bank.

The suspicion surfaced during the 2023 National Assembly audit. In April of the same year, it was pointed out that NongHyup Bank approved a loan of 10 billion won in advance, even though a credit guarantee from the Korea Credit Guarantee Fund for construction cost loans from A Holdings, whose main business is real estate leasing, was not issued.

Prosecutors are reportedly investigating the circumstances under which NongHyup Bank's Gyeonggi Business Headquarters signed a financial support agreement with A Industrial Development in 2021 to understand the process through which the illegal loan was made.

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