Alphabiz - Police Raid NongHyup Headquarters Over Alleged Misuse of Funds for Legal Fees

Photo courtesy of Yonhap News

[Alpha Biz= Kim Jisun] Police have launched a search and seizure operation into National Agricultural Cooperative Federation over allegations that company funds were used to cover personal legal expenses of employees.

According to authorities on May 13, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit conducted raids on the compliance department and related offices at NongHyup’s headquarters in central Seoul.

The investigation centers on suspicions that approximately KRW 320 million in corporate funds was used to pay legal fees for employees involved in personal criminal cases.

The Ministry of Agriculture, Food and Rural Affairs previously identified signs of the alleged misconduct during an audit and referred the case for investigation in January. Police have since been examining the matter after taking over the case.

Officials noted that this probe is separate from an ongoing investigation into Kang Ho-dong over alleged bribery charges.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)