[Alpha Biz= Kim Sangjin] Prosecutors have launched a search of the securities firm executive's property in connection with an alleged loan mediation of illegal private financing (PF), amounting to tens of billions of won.

The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (led by Chief Prosecutor Lee Seung-hak) carried out searches on Tuesday at the headquarters of Korea Investment & Securities and the home of former team leader A, who is accused of violating the Specific Economic Crimes Aggravated Punishment Act (for mediation of private financing) and the Usury Act.

A is reported to currently serve as a senior executive at a subsidiary of Korea Investment & Securities.

Last year, the Financial Supervisory Service (FSS) uncovered indications of illegal profits by securities firm employees during an inspection of five securities companies in January, which led to a referral to prosecutors.

Based on this, the prosecutors initiated an investigation and discovered that A, who was in charge of PF at Korea Investment & Securities, had mediated private loans exceeding the PF loan limit, receiving excessive interest fees. It is reported that the interest charged was high enough to match the principal amount.

 

 

 

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