National Assembly Political Affairs Committee Criticizes Korea Development Bank for Lending to Myeongnyundang Operating a Lending Company [2025 Audit]

Sangjin Park, President of the Korea Development Bank, is receiving a report from an official during the National Assembly's Political Affairs Committee hearing on the Financial Services Commission and others on October 20, 2025. Photo by Hyunmin Kim

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Members of the National Assembly's Political Affairs Committee pointed out that the Korea Development Bank extended a large-scale loan to Myeongryundang, which operates Myeongryun Jinsa Galbi, and there are indications that these funds were funneled into an unregistered lending company affiliated with Myeongryundang. Sangjin Park, President of the Korea Development Bank, stated that an internal audit is underway regarding the loan to Myeongryundang.

During the committee meeting on the morning of October 20, Assemblyman Kim Yongman of the Democratic Party of Korea said, "The Korea Development Bank provided a loan to Myeongryundang using low-interest public funds intended for small business owners, and this loan was then delivered to franchise owners at high interest rates in the 10% range through a lending company with special ties to Myeongryundang." He further pointed out, "The Korea Development Bank lent a total of 127 billion won to Myeongryundang, and more than 80 billion won of that amount was funneled to the lending company."

He continued, "It is questionable that the Korea Development Bank provided an additional 24 billion won loan in 2025, even after Songpa District Office imposed an administrative penalty on Myeongryundang in July 2024 for violating unregistered lending regulations."

Assemblyman Kim asked President Park, "According to the Act on Specific Financial Information, if there is an illegal risk, the loan transaction should be terminated. Why was it not terminated?" In response, President Park replied, "It could be terminated immediately, but since there are franchisees involved, there are difficulties in making a decision."

Yoon Hanhong, Chair of the Political Affairs Committee, also criticized President Park, stating, "The issue with Myeongryun Jinsa Galbi was raised during last week's Fair Trade Commission audit, and it is problematic that you are unable to provide a proper answer today."

President Park said, "Internally, it does not seem that all of the Korea Development Bank's loan funds were used for the lending company," adding, "Since Myeongryundang provided high-interest loans to its franchisees, we will closely examine how much profit was taken."

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