Prosecutors Detain Korea Land & Housing Trust Affiliate Financial Executive Over Alleged Hundreds of Billions Embezzlement

Key Financial Officer in Custody

Chairman of Korea Land & Housing Trust Expected to Be Summoned Soon

Prosecutors investigating allegations that the chairman of Korea Land & Housing Trust embezzled hundreds of billions of won from affiliated companies have taken custody of an executive responsible for financial management.

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Jinhyung Kang

According to the legal community on the 17th, the Seoul Central District Court issued an arrest warrant the previous day for Mr. A, an executive at an affiliate of Korea Land & Housing Trust, on charges of embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, citing concerns about the destruction of evidence.

The Seoul Central District Prosecutors' Office's Anti-Corruption Investigation Division 3, headed by Prosecutor Kim Jinyong, is investigating suspicions that Chairman Cha of Korea Land & Housing Trust used hundreds of billions of won from affiliated company funds for personal purposes.

In May, prosecutors raided Chairman Cha's residence and the headquarters of Korea Land & Housing Trust, securing accounting records and tracking the flow of funds. Mr. A is known to have been in charge of overall financial management for the affiliate.

With prosecutors now having secured custody of the key financial officer, the investigation into Chairman Cha is expected to accelerate. Prosecutors are anticipated to summon the chairman soon to determine whether he directly ordered or was involved in the use of the funds.

This investigation began after the Financial Supervisory Service announced in May 2024 the results of inspections into illegal and unsound practices by major shareholders of Korea Land & Housing Trust and Korea Asset Trust, subsequently referring the case to the prosecution.

While investigating allegations of bribery involving former and current employees of Korea Asset Trust, prosecutors uncovered signs of criminal activity related to Chairman Cha and formally launched an investigation in July of the same year.

This content was produced with the assistance of AI translation services.