Disappearance of former Sambu chairman fabricated

By Na Jeong-ju

Police said Tuesday that they have apprehended Yang Jae-hyeok, a former chairman of a now-defunct financial firm, Sambu Finance, who is wanted for involvement in an embezzlement case.

Yang was reported missing in July by his family, triggering rumors that he might have been kidnapped or killed. Police said Yang and his family fabricated his disappearance because they wanted to find Yang’s asset manager who is in hiding after stealing his money.

Yang was apprehended Monday at a cafe in Busan following an anonymous tip-off.

He told police that he fabricated his disappearance, believing that police would try to catch the asset manager, surnamed Ha, who reportedly managed more than 200 billion won ($181 million) in secret funds Yang stashed away while operating the financial firm. Ha, however, absconded with the money in November last year.

Ever since Yang’s alleged disappearance, police have secured recordings of surveillance cameras which show him shopping alone in discount stores in Daegu, Pohang and Seoul. He also called his family numerous times while being pursued by police.

Police said Yang will be questioned about the source of the secret funds. His wife, a Miss Korea beauty pageant winner, will be summoned for questioning as well.

Sambu Finance, which was based in Busan, went bankrupt in 1999 while engaging in unauthorized lending businesses. It inflicted more than 200 billion won in losses on about 30,000 investors, according to the prosecution.

Investigators suspect that Yang embezzled hundreds of billions of won in company funds before declaring bankruptcy. The 58-year-old former chairman has properties nationwide.

He was once regarded as one of the top 10 richest businessmen in Busan. He hosted beauty contests many times and was a major investor in the film industry until the firm went bankrupt.