Film director sued over fraud

By Kim Bo-eun

Kwak Kyung-taek

Director Kwak Kyung-taek, known for his 2001 record-breaking film "Friend," is facing fraud charges for allegedly failing to repay loans worth over 9 billion won.

According to the Seoul Eastern District Prosecutors’ Office, Wednesday, Cho Yong-moon, former chairman of Parangsae Savings Bank, filed a suit against Kwak, 50, the day before for failing to pay back 9.2 billion won of 17.5 billion won he borrowed from the bank from 2008 to 2011.

According to the plaintiff, Kwak already had debts amounting to 8 billion won at the time of the loans, due to a series of box office failures, and was therefore incapable of repaying the loans.

Of the total 17.5 billion won in loans, the director borrowed some 12.9 billion won “to cover production costs of films and dramas,” but used the money to pay back previous loans and for his own business, the plaintiff said, claiming he committed fraud.

Following the 2011-2012 illegal loan scandal involving several savings banks, Cho was indicted on charges of breach of trust, and was sentenced to three years in prison suspended for five years in October 2013.

The prosecution also summoned Kwak as a witness at that time, but he did not face charges.

Kwak rose to fame after “Friend” reached 8 million in ticket sales, a record high for the Korean film industry at that time. Kwak’s films after “Friend,” however, did not see much success.