By Kim Rahn
The head of a savings bank leaped to his death Friday during a raid by a joint team investigating irregularities involving seven suspended secondary banks.
Jeong Gu-haeng, president of Jeil 2 Mutual Savings Bank, was found dead lying on his face in the street in front of the bank’s headquarters in Jongno, central Seoul, at around 12:05 p.m.
The day before, the prosecution organized the joint investigation team with financial regulators to crack down on illegalities involving secondary lenders.
“An officer patrolling there found him after hearing a thud. It seems Jeong jumped off the top of the six-story building while the raid was ongoing. We are examining the exact circumstances,” a police officer said.
Jeong was last seen by bank workers in his office on the third floor at around noon. Investigators were searching an office on the second floor at that time, according to a senior prosecutor.
Witnesses said Jeong, who stayed in his office with other bank executives, told them to cooperate with the investigation. He then left the office, saying he would go to the restroom, they said.
The prosecution said a handwritten memo was found, in which the 50-year-old told executives: “Take care of bank affairs. I left a memo, so please read it.”
“He left another document, in which he expressed his concern over the inspection for the sale of the bank, his regret to bank clients, and said he would take responsibility,” the police officer said.
Jeil 2 was one of the seven savings banks suspended from operating for six months Sunday by the Financial Services Commission due to their poor capital adequacy ratio. The other six were Jeil, Tomato, Prime, Daeyeong, ACE and Parangsae.
With regard to the suicide, the prosecution said, “It is regrettable. When the investigators arrived and asked him to cooperate with the investigation, he said he would. We guess he was pressured from the operation suspension and the probe.”
The joint team raided 20 locations including headquarters of the banks and homes of their largest shareholders, seizing accounting books, bills and computers. “The headquarters are the main target of the investigation for now. We may raid branches as well if necessary,” a prosecutor said.
After examining the seized materials, the team will summon officials of banks suspected of illegal lending. It has already banned some key executives and largest shareholders from leaving the country.
“The suicide was an unexpected occurrence. But the probe will go on as planned,” the prosecutor added.
The team was comprised of 80 members from the Seoul Central District Prosecutors’ Office, the National Police Agency, the Financial Supervisory Service, the National Tax Service and the Korea Deposit Insurance Corp.