A banking executive suspected of embezzling company money recently reported the theft of millions of won in what could have been his own slush funds, police said Tuesday.
Kim Chan-kyong, the chief executive of the now-suspended Mirae Savings Bank, was caught by the Coast Guard last Thursday while attempting to leave for China by boat. Prosecutors sought an arrest warrant for him Monday on suspicion he tried to sneak out of the country with 13 billion won ($11.3 million) in company funds.
The apparent escape attempt came days before financial regulators suspended on Sunday the operations of Mirae Savings Bank and three other savings banks for their failure to meet the capital adequacy ratios recommended by the Bank for International Settlements (BIS) standards.
Prosecutors have launched an investigation to determine whether the banks gave out illegal loans and whether their top shareholders and management embezzled money or bribed politicians and government officials to avoid disciplinary action.
Police in Asan, about 95 kilometers south of Seoul, said they received a theft report on April 8 from the owner of a local Japanese restaurant who claimed to have had 35 million won stolen from his van.
A police investigation revealed, however, that Kim, 56, traveled to Asan in the van the previous day and that the cash belonged to him.
The restaurant owner, whose name was withheld, later told police he was asked by Kim to report the theft on his behalf, as the two were longtime acquaintances.
Police said they are investigating the case based on reports the stolen money was part of Kim's slush funds and could have totaled as much as 5.6 billion won. They also said they are verifying reports the culprit could be a villa manager who has known Kim for 50 years. (Yonhap)