Prosecution Raids Chairman of Korea Land & Housing Trust over Affiliate Fund Embezzlement

Suspected of Using Affiliate Funds for Personal Purposes

The prosecution has launched a compulsory investigation into the chairman of Korea Land & Housing Trust, who is suspected of embezzling hundreds of billions of won from affiliates.

On the 9th, the Taegeukgi and prosecution flags flutter in the wind in front of the Seoul Central District Prosecutors' Office building, as Kwak Joonggeun, former Special Warfare Commander, is reportedly being summoned and investigated by the Special Investigation Headquarters for Emergency Martial Law of the prosecution. Photo by Hyunghan Heo

According to legal sources on May 22, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (headed by Prosecutor Kim Jinyong) conducted a search and seizure at the residence of Mr. A, the chairman of Korea Land & Housing Trust, as well as at the headquarters of Korea Land & Housing Trust, on charges including embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

Mr. A is suspected of using affiliate funds for personal purposes. It has also been reported that the prosecution has uncovered indications that the embezzled funds were used for gambling at Kangwon Land and other purposes.

This investigation was initiated following a complaint filed by the Financial Supervisory Service. In May 2024, the Financial Supervisory Service identified acts of private interest pursuit by major shareholders and executives of Korea Land & Housing Trust and Korea Real Estate Investment & Trust, and requested a prosecutorial investigation into illegal and improper conduct.

While investigating former executives and employees of Korea Real Estate Investment & Trust for allegedly receiving illegal kickbacks worth several hundred million won from a sales agency, the prosecution also discovered allegations against Mr. A and began an investigation into him in July of the same year. Subsequently, the prosecution indicted the executives and employees of Korea Real Estate Investment & Trust in November.

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