Two former Kookmin Bank employees to stand trial for illegal lending

Two former employees of Kookmin Bank’s unit in Tokyo have been indicted on charges of extending illegal loans worth nearly 150 billion won ($140 million) to South Korean companies operating in Japan, prosecutors said Thursday.

The Tokyo branch of South Korea’s leading bank has been investigated by Seoul prosecutors over suspicions that it lent more than permitted to Japan-based firms to secure returns, some of which were later used to amass slush funds here.

The suspects, including a 56-year-old former Tokyo branch manager only identified by his surname Kim, are accused of playing a leading role in granting unauthorized loans between January 2007 and January 2010, prosecutors said.

The Seoul Central District Prosecutors’ Office probing the case said the suspects allegedly forged loan application documents and overvalued collateral in order to grant massive loans to business groups.

The indictment comes after prosecutors in December charged two other former employees, including Kim’s successor surnamed Lee, for allegedly extending illegal loans worth 320 billion won. (Yonhap)