Prosecution Refers korea Investment & Securities Employees to Court Over Unregistered Loans
Table of Contents
- Prosecution Refers korea Investment & Securities Employees to Court Over Unregistered Loans
- Korea Investment & Securities Loan Scandal: A Q&A
- What is the Korea Investment & Securities Loan Scandal?
- Who is involved in the scandal?
- What is the ”One plus One (1+1)” scheme?
- What are the accusations against the employees?
- How much in unregistered loans was arranged?
- what are the implications for Korea Investment & securities?
- Summary of Key Details
Real estate project financing (PF) deal under scrutiny.
Seoul – Prosecutors have handed over employees of korea Investment & Securities to the courts following accusations of arranging unregistered loans tied to a real estate project financing (PF) scheme known as One plus One (1+1)
.
According to a statement released on march 25, the Seoul Central Prosecutor’s Office’s Anti-corruption Inquiry Unit prosecuted eight individuals.Those prosecuted include Mr. Bang Mo, the head of the PF headquarters at korea Investment & Securities, and Mr. Kim Mo,a member of the same headquarters.
The One Plus One (1+1)
arrangement involves lending initial business funds to real estate PF implementers who lack the capital to raise funds independently.
Authorities allege that Mr. Bang and Mr. Cho brokered unregistered loans operated by Mr. kim, providing initial funding to Company A, which was undertaking real estate PF projects for Korea Investment & Securities. These loans,extended between February and July 2021,allegedly carried interest rates exceeding 100% for the implementer.
Prosecutors contend that when Company A’s initial project costs surpassed the loan limit of 3 billion won (approximately $2.3 million USD) between February and July 2021, the company secured an additional 2 billion won through One Plus One
arrangements from six sources, including Mr. Kim’s unregistered lending operation. The total interest burden on the implementer reportedly reached approximately 2.2 billion won.
In total, the individuals are accused of arranging 6.2 billion won in unregistered loans for company A and five other implementers. Six individuals, including Mr. Kim, who allegedly operated the unregistered lending scheme, have also been prosecuted.
Korea Investment & Securities Loan Scandal: A Q&A
What is the Korea Investment & Securities Loan Scandal?
The Korea Investment & Securities loan scandal involves allegations of unregistered loans arranged by employees of Korea Investment & Securities. The loans were tied to a real estate project financing (PF) scheme known as “One plus One (1+1)”.
Who is involved in the scandal?
According to the Seoul Central Prosecutor’s Office, eight individuals have been prosecuted, including:
Mr. Bang Mo, the head of the PF headquarters at Korea Investment & Securities.
mr. Kim Mo, a member of the PF headquarters.
* Six other individuals,including Mr. Kim, alleged to be operators of the unregistered lending scheme.
What is the ”One plus One (1+1)” scheme?
The “one plus One (1+1)” arrangement involves lending initial business funds to real estate PF implementers who lack the capital to raise funds independently.
What are the accusations against the employees?
Authorities accuse mr.Bang and Mr. Cho of brokering unregistered loans operated by Mr. Kim,providing initial funding to Company A. The loans, extended between February and July 2021, allegedly carried interest rates exceeding 100% for the implementer. In total, the individuals are accused of arranging unauthorized 6.2 billion won in loans.
How much in unregistered loans was arranged?
The individuals are accused of arranging 6.2 billion won in unregistered loans for Company A and five other implementers.
what are the implications for Korea Investment & securities?
While the article focuses on the prosecution of individuals, the scandal could potentially lead to reputational damage and regulatory scrutiny for Korea Investment & Securities.
Summary of Key Details
| Aspect | Details |
| :——————— | :————————————————————————————————————— |
| scheme Name | One plus One (1+1) |
| Loan Type | Unregistered Loans |
| Key Individuals | Mr. Bang Mo, Mr. Kim Mo,and six others |
| Total Loan Amount | 6.2 billion won |
| Interest Rate | Allegedly exceeded 100% |
| Company Involved | Korea Investment & Securities, Company A |
| Prosecution Date | March 25 |
