Former Shinhan chairman’s son indicted for fraud

A son of former Shinhan Financial Group Chairman Ra Eung-chan has been indicted without detention on charges of fraud.

According to the Seoul Central District Prosecutors’ Office, Ra’s son, identified only by his surname, was indicted for swindling billions of won from investors in a redevelopment project in Seoul.

The 44-year-old is accused of having taken 3 billion won ($2.7 million), that two investors identified by the surname Hwang, who are father and son, invested in two development projects in 2005. At the time Ra was running the company contracted for the projects.

Ra told the Hwangs that his father had invested 1 billion won in the project and that Taekwang Industry Co. chairman Park Yeon-cha had also agreed to invest in the projects.

However, the project was going through difficulties and Ra was scheming to use the Hwangs’ money to acquire stakes in the project held by the co-contractor when he was at a risk of losing 800 million won he had originally invested in the project.

The company Ra had intended to buy out of the project was also undergoing financial difficulties, making the outlook for the project unclear, the prosecutors’ office said.

By Choi He-suk (cheesuk@heraldcorp.com)