FSS seems to be covering loan scandal

The Seoul District Prosecutor's Office, which is investigating illegal lending by Dongbang Mutual Savings, said that there is not much progress because the documents provided by Korea Digital Line president Chung Hyun-Joon and other people involved in the scandal are lacking. In this connection, some pointed out that the FSS is trying to cover up the scandal.

Prosecutors said that the FSS has conducted a massive investigation about the scandal and holds a lot of related documents, noting that it provided only 10 pages of document to the prosecutor's office. They noted that it was a short report about who obtained how much of a loan from Dongbang and Daeshin mutual savings. So the prosecutor's office asked the FSS to resubmit the relevant documents.

The office indicated that the FSS found last December that Daeshin Mutual Savings had provided 6.2 billion won in illegal lending to its president Chung and Dongbang vice chairman Lee Kyung-Ja. However, the FSS just disciplined two of its executives instead of inflicting severe punishment, including suspension of its operation. For this reason, prosecutors see that there is a possibility that senior officials of the FSS are involved in the scandal, so they are planning to cite other high-ranking FSS officials for investigation.

The FSS accused Chung, Dongbang Mutual Savings president Yoo Cho-Woong and Daeshin Mutual Savings president Lee Soo-Won to the prosecutor's office, but it didn't asked the office to ban their departure from the country. It was confirmed that Yoo left the country for the United States on Oct. 21, one day before the FSS filed a charge on them.