W332 bil. seized from savings back executives

By Yun Suh-young

The prosecution said Wednesday that they have confiscated assets worth more than 332.7 billion won ($288 million) from 12 major shareholders and executives of four suspended savings banks.

Investigators said the assets were amassed illegally through illicit loans, accounting fraud and embezzlement.

The confiscation came more than a month after prosecutors raided the head offices of Solomon, Mirae, Korea and Hanju savings banks, along with the homes of each bank's executives.

The prosecution indicted the 12 shareholders and executives on charges of breach of trust, accounting fraud and embezzlement. They are suspected of embezzling a combined total of 117.9 billion won from the banks.

The four banks _ which were suspended in May over their failure to meet capital adequacy ratios _ were also found to have extended illegal loans worth 1.28 trillion won, according to investigators.

The banks were ordered to suspend business operations for at least six months, to appoint new managers and to increase their capital adequacy ratios to 5 percent through paid-in capital increases. If not, they will face liquidation.

Kim Chan-kyung, chairman of Mirae, allegedly embezzled assets worth 57 billion won, including 12 pieces of artwork owned by his bank.

Kim, 55, was caught by the Korea Coast Guard last month while attempting to sneak out of the country by boat.

Lim Suk, 50, chairman of Solomon, is suspected of offering 2 billion won in bribes to financial regulators to help his bank avoid inspections. He is also accused of inflicting 112.3 billion in losses on his bank through illegal loans, and misappropriation and embezzlement of bank funds.

Last year, the Financial Services Commission suspended 16 savings banks for their heavy debts and insufficient capital adequacy ratios. The prosecution has already confiscated assets worth 316.8 billion won from the 16 banks.