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Dongbang Mutual Savings investigated

Posted October. 26, 2000 13:46,   


The Seoul Prosecutor's Office has begun an investigation of Korea Digital Line president Chung Hyun-Joon regarding the illegal lending of Dongbang Mutual Savings, as he voluntarily reported to the office on Thursday.

The prosecutors said that Dongbang Mutual Savings vice chairman Lee Kyung-Ja also will report to the office the same day. They also are investigating companies and people involved in the scandal with a search warrant issued by the court.

It is expected that the prosecutor's office will secure relevant documents to confirm the amount of loan illegally offered, as well as the fund used for lobbying activities through the seizure and search.

The prosecutors questioned employees of Dongbang and Daeshin mutual savings firms, as well as officials of the Financial Supervisory Service, to investigate how 63.7 billion won was loaned in an illegal manner.

In addition, the prosecutor's office requested the Financial Supervisory Service to submit a list of subscribers to private fund that Chung has created to manipulate the stock prices. The fund was designed to make investment in Pyongchang Information and Communications with billions of won, and a number of FSS officials, politicians and private money lenders reportedly joined in the fund.