Sohn Tae-seung, the former chairman of Woori Financial Group (Woori Financial Group)

[Alpha Biz= Reporter Kim Jisun] On August 27, prosecutors launched a search and seizure operation at Woori Bank as part of an investigation into allegations of improper loans granted to relatives of Sohn Tae-seung, the former chairman of Woori Financial Group.

The Seoul Southern District Prosecutors' Office's Financial Investigation Division 1, led by Chief Prosecutor Kim Su-hong, sent investigators to eight offices, including Woori Bank's headquarters and the Seolleung Financial Center, as well as four residences of individuals involved in the case.

The Financial Supervisory Service previously reported that Woori Bank had issued a total of 61.6 billion won in loans to entities and individuals connected to Sohn Tae-seung from April 2020 to January this year, with 35 billion won deemed improper. Sohn served as the chairman of Woori Financial Group from December 2018 to March 2023, and as the president of Woori Bank from December 2017 to March 2020.

As of August 9, the outstanding loan balance related to Sohn's relatives was 30.3 billion won (25 cases), with 17 cases (19.8 billion won) experiencing defaults or short-term delinquencies. The estimated potential losses are between 8.2 billion and 15.8 billion won.

Prosecutors suspect that Woori Bank may have neglected to verify the authenticity of loan documents and improperly assessed collateral and guarantees. They also believe that the loans were misused by Sohn's relatives for purposes other than intended.

 

 

 

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