The prosecution on Tuesday raided Woori Bank’s headquarters and branch offices in connection with allegations of huge inappropriate loans extended to relatives of a former chief of its holding company.

Prosecutors and investigators from the Seoul Southern District Prosecutors Office searched eight bank offices, including the head office in central Seoul and a southern Seoul branch, and four residences, which are all related to the allegations.

Woori Bank is suspected of having offered inappropriate loans worth 35 billion won (US$26.3 million) to corporations and individual business owners related to the relatives of Son Tae-seung, former chairperson of the Woori Financial Group, from April 3, 2020, to Jan. 16 this year.

Prosecutors suspect the loan-related documents and collateral were improperly evaluated.

Son headed the group, which controls Woori Bank, from 2020 to 2023.

Source: Yonhap News Agency