NH Nonghyup Bank Headquarters

Prosecutors investigating the ‘illegal loan allegations’ of NongHyup Bank are conducting a search and seizure at the headquarters of NongHyup Bank on the 23rd.

According to prosecutors, the Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office, led by Director General Lee Joon-dong, has been searching several offices at the headquarters of NongHyup Bank since the morning regarding the illegal loan allegations.

NongHyup Bank is accused of providing illegal loans to Company A.

These allegations surfaced during the 2023 National Assembly audit. The core of the suspicion is that NongHyup Bank approved a loan worth hundreds of millions of won to A Holdings in advance, even though the Korea Credit Guarantee Fund (KODIT) guarantee certificate for construction cost loans had not been issued. A Holdings, which mainly focuses on construction, is the parent company of Company A.

During the investigation, prosecutors applied for an arrest warrant for Han, the representative of A Holdings, but the court dismissed it on the 27th of last month.

At that time, the court explained the reason for dismissing the warrant by stating, “There is room for dispute regarding the criminal charges against (Mr. Han), and it is necessary to guarantee the right to defense.”