Earnest Prosecution Investigation into `KCGF Bill Fraud`

As Sohn Yong-Moon, the fund director of Korean Credit Guarantee Fund (KCGF), who is suspected of having involved in corruption during the time of KCGF bill fraud in 1999, resigned suddenly, the prosecution investigation hereafter is in the spotlight.

An official at Ministry of Finance and Economy said on Oct. 29, ``Director Sohn sent in his resignation after Donga Daily News carried the report, and the Minister of Finance and Economy accepted it on Oct.25.``

This official did not release the details regarding the background of the resignation. However, it appears that Director Sohn has been given resignation pressure within and without after this newspaper exclusively raised a suspicion early last week that he was involved in corruption.

Director Sohn has been suspected by the KCGF Internal Inspection Bureau and the Board of Audit and Inspection of Korea (BAI) of having associated with the fraud group, for he applied pressure to the executives of the front line branches to vouch for the fraud firms regardless of their objection when KCGF was swindled out of 4 billion won by the bill fraud group.

Meanwhile, the Prosecutor`s Office launched an earnest investigation into the suspicion of connection between S, the principal of the fraud, against whom KCGF and

BAI brought a charge, and KCGF workers. An official at the Seoul District Prosecutor`s Office said, ``It takes so much time to examine documents since numerous private business firms are found involved in the case.`` suggesting that the people concerned would be summoned next month.

ecopark@donga.com