[Alpha Biz= Paul Lee] Prosecutors in South Korea launched a raid on the headquarters of the National Agricultural Cooperative Federation (Nonghyup) on June 3 as part of an ongoing investigation into alleged fraudulent loans by NH Nonghyup Bank.



The Seoul Central District Prosecutors' Office’s anti-corruption unit is examining claims that the bank approved over KRW 20 billion (approximately USD 14.5 million) in loans to Seoyoung Holdings based on inflated construction contracts.



Authorities had previously raided NH Nonghyup Bank’s headquarters and related entities, including Seoyoung Holdings and Seoyoung Industrial Development Group, earlier this year.



The investigation stems from allegations first raised during a 2023 parliamentary audit, when lawmakers accused the bank of disbursing a KRW 10 billion loan before the issuance of a credit guarantee.



In May, prosecutors sought to detain Seoyoung Holdings CEO Han Sang-kwon, but the court denied the request, citing the need to protect his right to defense.

 

 

 

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