Prosecutors raid Woori HQ over ex-chairman loan scandal

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Prosecutors raid Woori HQ over ex-chairman loan scandal

Published: 18 Nov. 2024, 13:33

SHIN HA-NEE
[email protected]

A Woori Bank branch in Jung District, central Seoul, on April 28, 2022. [YONHAP]

Prosecutors raided the offices of the Woori Financial Group chief and Woori Bank CEO on Monday over a major loan scandal involving its former chairman.

The Seoul Southern District Prosecutors’ Office conducted search and seizure operations at Woori Bank’s headquarters in Jung District, central Seoul, on Monday morning, mainly at the head offices of key executives including Woori Financial Group Chairman Yim Jong-yong and Woori Bank CEO Cho Byung-kyu, as well as divisions involved in loan businesses.

In August, the Financial Supervisory Service uncovered that Woori Bank granted 61.6 billion won ($44.2 million) in loans to borrowers with connections to former Woori Chairman Son Tae-seung, who held the top post from January 2019 to March of last year.

Of the total, 35 billion won was found to have been improperly granted without appropriate screening. Three people, including Son's brother-in-law identified by the surname Kim, have been arrested so far on charges of embezzlement and document forgery.

BY SHIN HA-NEE [[email protected]]