Seoul’s Gwangjin Police Station is reportedly investigating a male chairman in his 50s at a Saemaeul Geumgo in Seoul on suspicion of violating the real-name financial transaction law and embezzlement, according to multiple media outlets. Reports allege that, since 2020, the chairman borrowed the names of employees, executives, and relatives to open and manage 139 nominee deposit accounts totaling approximately 11 billion won.
Key Development
The newly confirmed points in this case are the scale of the nominee deposits and the circumstances surrounding the federation’s complaint. The Korea Federation of Community Credit Cooperatives reportedly detected the alleged misconduct during an audit in June 2026 and filed a complaint with police on August 6, 2026.
The confirmed status at this stage is a police investigation into allegations; it is not a final court conviction.
Current Status
According to reports, funds belonging to the chairman’s wife and mother-in-law were also deposited through nominee accounts. Reports further state that the accounts were repeatedly closed at maturity without the named holders’ consent, after which the principal and interest were redeposited under the same names.
The Korea Federation of Community Credit Cooperatives is also reportedly auditing allegations of abusive conduct and workplace harassment by the chairman. However, the suspect’s identity, the name of the affiliated credit cooperative, and the specific flow and amount of the allegedly embezzled funds have not been confirmed.
Impact
The launch of this investigation alone does not confirm a suspension of deposit payments at the credit cooperative involved or any change in the safety of deposits across all Saemaeul Geumgo branches. The investigation of a specific credit cooperative should therefore be considered separately from the deposit-protection system applying to Saemaeul Geumgo as a whole.
According to official Saemaeul Geumgo guidance, eligible financial products are protected, based on the individual Saemaeul Geumgo, up to a maximum of 100 million won per person, including principal and the prescribed interest.
What to Watch Next
The next points to monitor are additional announcements from the police and the federation’s audit findings and disciplinary action, if any. As of the search date, no separate official statement from the federation or final audit result concerning this case had been confirmed.