Supreme Public Prosecutor Office Demands “Maximum Penalty for Public Fund Corruption“

The prosecutor office launched an indefinite special crackdown on various corruptions of the owners of the insolvent companies supported by the government-raised public funds, and the officials of the financial institutions.

Minister of Justice Choi Kyung-Won ordered the supreme public prosecutor`s office (SPPO) to establish `the special investigation headquarters` for recovering the money that the owners of insolvent companies concealed, and cracking down the corruptions related to public funds. The special investigation headquarters will be set jointly with the Financial Supervisory Service and the Korea Deposit Insurance Corporation, and Chief of Central Investigation Department will take charge of its operation.

Following Justice Minister`s order, the SPPO decided to establish a rule to investigate the owners and the officials of the financial institutions in custody, and to demand the maximum penalty allowable by law for suspects who are involved in the serious corruption.

The prosecutor`s office will focus on such cases as ▲ property usurpation of insolvent companies such as companies under court receivership or composition, ▲ secret fund raising and concealment or illegal disposal of company properties by the company owners, ▲ window-dressing settlement and fraudulent loan, ▲ violation of obligation on the company notification, and ▲ intentional bankruptcy after lending a large-amount loan.

And the prosecutor`s office included in the subjects of special crackdown an action in violation of one`s duty—such as bribery related to management of insolvent companies and the loan of public funds, embezzlement, and careless use of expenses—, false evaluation of certified public accountants and appraisers, and a swindle of public funds such as construction fund and foundation fund.

The prosecutor`s office declared that it exposed 1,855 suspects related to the corruption of public funds, among which 738 suspects were arrested through the crackdown which has been conducted from September last year.

Wi-Yong Jung viyonz@donga.com