Value context and insight. lkm@koreatimes.co.kr
Ex-FSS official probed for ties to Keangnam
By Lee Kyung-min
Kim Jin-soo
By Lee Kyung-min
Prosecutors raided the home and offices of former Financial Supervisory Service (FSS) deputy governor Kim Jin-soo over allegations that he had corrupt ties with Keangnam Enterprises.
They also raided the headquarters of Shinhan Bank, which was the firm’s creditor bank when it was under a creditor-led debt rescheduling program in 2013.
The prosecution suspects Kim peddled his influence on the bank to provide emergency funds to Keangnam despite the bank’s objection. He is suspected of having taken bribes from the firm’s former owner, Sung Woan-jong, in return for his help.
Prosecutors will question Kim as well as FSS officials.
The investigation is based on allegations raised by the Board of Audit and Inspection that the financial regulator gave preferential treatment to Keangnam.
Also, the prosecution reportedly secured testimonial evidence to prove their case after questioning some bank officials.
Investigators with the Seoul Central Prosecutor’s Office said they seized hard disks and documents from both his home and offices.
The emergency fund provided to the firm amounts to some 1 trillion won ($ 91 million), according to the prosecution.