Prosecution to retrieve illegal withdrawals from savings bank
SEOUL, June 21 (Yonhap) -- A scandal-ridden savings bank was found to have tipped off some customers about the lender's impending business suspension in February so as to help them withdraw their deposits in advance, prosecutors said Tuesday.
The total amount of money illegally withdrawn the night before the suspension reach 8.5 billion won (US$7.85 million), they said, adding that the money will be fully retrieved.
Based on the findings, prosecutors indicted three high-ranking bank executives -- Kim Yang, vice president of Busan Savings Bank; Ahn Ah-soon, an executive director of the bank; and Kim Tae-oh, president of one of its affiliates -- on charges of obstruction of business and embezzlement.
Prosecutors, however, said allegations that the financial regulator leaked information on the planned suspension and that high-ranking government officials and politicians are among those who illegally withdrew the money are not true.
All three of the bank executives already were arrested and indicted for illegal loans and other financial irregularities involving 7 trillion won in total in May, along with its chairman, Park Yeon-ho.
According to prosecutors from the Supreme Prosecutors' Office (SPO), Kim, the vice president, is suspected of ordering Ahn to tell VIP customers about the impending suspension so they could withdraw deposits on Feb. 16, one day before the bank was suspended for capital shortages.
A total of 45,947 people withdrew 1.14 trillion won from five affiliate banks of Busan Savings Bank Group between Jan. 25, when the financial authorities had internally decided to suspend ailing savings banks, and Feb. 17, when the suspension was made, the prosecution said.
"We confirmed that executives of Busan Savings Bank tipped off some selected customers about the suspension after the financial regulator asked the bank to apply for a suspension of operation," said Woo Byung-woo, a senior prosecutor at the Central Investigative Department of th! e SPO. " But we didn't find that the financial officials leaked the information to the bank." The ever-widening probe of the Busan-based bank has jolted the nation for months, sparked by the advance mass withdrawal.
Investigators initially focused on illegal withdrawals by some customers and financial illegalities by the bank, but later shifted to ranking former and incumbent government officials and politicians for allegedly receiving bribes from the bank in return for helping it survive audits.
Until now, more than 10 former and incumbent ranking financial officials have been arrested or indicted with more than 40 low-level officials questioned in connection with the savings banks scandal. (Yonhap)
The total amount of money illegally withdrawn the night before the suspension reach 8.5 billion won (US$7.85 million), they said, adding that the money will be fully retrieved.
Based on the findings, prosecutors indicted three high-ranking bank executives -- Kim Yang, vice president of Busan Savings Bank; Ahn Ah-soon, an executive director of the bank; and Kim Tae-oh, president of one of its affiliates -- on charges of obstruction of business and embezzlement.
Prosecutors, however, said allegations that the financial regulator leaked information on the planned suspension and that high-ranking government officials and politicians are among those who illegally withdrew the money are not true.
All three of the bank executives already were arrested and indicted for illegal loans and other financial irregularities involving 7 trillion won in total in May, along with its chairman, Park Yeon-ho.
According to prosecutors from the Supreme Prosecutors' Office (SPO), Kim, the vice president, is suspected of ordering Ahn to tell VIP customers about the impending suspension so they could withdraw deposits on Feb. 16, one day before the bank was suspended for capital shortages.
A total of 45,947 people withdrew 1.14 trillion won from five affiliate banks of Busan Savings Bank Group between Jan. 25, when the financial authorities had internally decided to suspend ailing savings banks, and Feb. 17, when the suspension was made, the prosecution said.
"We confirmed that executives of Busan Savings Bank tipped off some selected customers about the suspension after the financial regulator asked the bank to apply for a suspension of operation," said Woo Byung-woo, a senior prosecutor at the Central Investigative Department of th! e SPO. " But we didn't find that the financial officials leaked the information to the bank." The ever-widening probe of the Busan-based bank has jolted the nation for months, sparked by the advance mass withdrawal.
Investigators initially focused on illegal withdrawals by some customers and financial illegalities by the bank, but later shifted to ranking former and incumbent government officials and politicians for allegedly receiving bribes from the bank in return for helping it survive audits.
Until now, more than 10 former and incumbent ranking financial officials have been arrested or indicted with more than 40 low-level officials questioned in connection with the savings banks scandal. (Yonhap)
Comments