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Loan Guarantees Worth 4.4 Billion Won Made after Political Funds Offered

Loan Guarantees Worth 4.4 Billion Won Made after Political Funds Offered

Posted September. 08, 2007 06:55,   


It has emerged that three cases of loan guarantees were approved by Kibo Technology Fund (KTF) to Kim Sang-jin, owner of a construction company, directly after Kim offered political funds to Jeong Yun-jae, 43, a former presidential secretary. Kim has been under investigation for illegally lending money for construction projects in Busan.

According to the Busan District Prosecutors’ Office in charge of the investigation, one month after Kim offered 20 million won in political funds to former presidential secretary Jeong, Kim received 4.42 billion won worth of loan guarantees on three occasions between April and May 2003.

Thanks to the loan guarantees from KTF, Kim received 4.42 billion won in loans from banks including Busan Bank, which he then used for the stock trade until he was caught by the Financial Supervisory Commission in 2003 on charges of manipulation of stock prices.

In light of this, the prosecution investigated KTF officials for possible linkage between the loan guarantees and Kim’s offer of political funds.

If such linkage is confirmed, the prosecution is planning to summon former secretary Jeong for investigation. One official from the prosecution said on September 7, “Jeong can be summoned anytime if necessary.”

The prosecution requested an arrest warrant for Kim on charges of embezzling 2.75 billion won, which he received as a loan from Busan Bank with false documents (service contract), and of offering 100 million won in bribes to the head of the Yeonje district office, Lee Wee-jun.

Kim decided not to question the validity of the warrant. If an arrest warrant is issued, he would be kept in custody for up to 20 days for investigation.

Meanwhile, Lee, the head of the Yeonje district office who received a bag with 100 million won in it from Kim, was also summoned by the prosecution. How he received the bag and then gave it back later are under investigation.

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