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Photo = Kyongnam Bank |
[Alpha Biz= Paul Lee] South Korea’s Supreme Court has upheld a 35-year prison sentence for a former BNK Kyongnam Bank executive who masterminded the country’s largest-ever financial embezzlement case, involving approximately KRW 300 billion (USD 215 million).
On June 30, the court dismissed the appeal filed by Mr. A, the bank’s former head of investment finance, confirming his conviction on charges of aggravated embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. However, the court returned part of the case to a lower court to recalculate the value of confiscated gold bars based on current market prices, effectively annulling the KRW 15.9 billion in asset forfeiture.
Mr. A was found guilty of embezzling KRW 228.6 billion between November 2014 and July 2022 in collusion with a high school friend, Mr. B. He also individually embezzled an additional KRW 80.3 billion from July 2008 to September 2018. The total amount stolen is equivalent to 8.47% of BNK Kyongnam Bank’s total equity, based on 2023 consolidated financial statements.
Investigators revealed that Mr. A fabricated loan documents by impersonating construction firm employees to embezzle loan funds. In some cases, funds transferred for loan repayments were illicitly redirected from accounts held in the bank’s name.
Authorities also discovered that Mr. A lived a lavish lifestyle using embezzled funds, including residing in a luxury villa in Seoul’s upscale Gangnam district and spending hundreds of billions of won on personal expenses.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
