Suspended savings bank chairman gets 9 years

Kim Chan-kyung

By Yi Whan-woo

A court sentenced the chief of a suspended savings bank to nine years in prison on Friday on charges of embezzlement, illegal loan provision and other irregularities.

The Seoul Central District Court ruled Kim Chan-kyung, 57, the chairman of the troubled Mirae Savings Bank, misappropriated 526.8 billion won ($490.2 million) of the bank’s fund and brought huge losses to customers.

Kim was one of the chiefs of the four ailing banks that were suspended in May 2012 for their failure to meet the capital adequacy ratio recommended by the Bank for International Settlement (BIS).

“Kim’s mismanagement of his bank has resulted in the suspension of its operations,” Judge Yum Ki-chang said in the ruling.

Kim made a failed attempt to escape the country and smuggle himself into China on a boat just before his bank was suspended.

“Such attempt is ill-natured and ugly and it came after he brought so much financial damage to his customers.”

He was also suspected of bribing a number of high-profile politicians, including President Lee Myung-bak’s elder brother, Sang-deuk, in return for business favors. He admitted it and testified against the President’s 78-year-old brother-cum-political mentor who was given a two-year jail term on Thursday.

The court handed down a suspended prison sentenced to two of Kim’s aides, including the bank’s executive officer surnamed Moon, for aiding Kim in irregularities.

He was given a three-year jail term suspended for five years. Kim’s driver, surnamed Choi, received a 30-month term behind bars suspended for four years.