Prosecution probing 22 people possibly involved in massive bank run
Published : May 1, 2011 - 21:43
Updated : May 1, 2011 - 21:43

Prosecutors are investigating 22 people who may have improperly withdrawn their money from local savings banks shortly before their business suspensions, an official said Sunday.

In February, operations of seven savings banks were suspended due to their capital shortages. Suspicions have erupted that employees of the banks told their family members and close friends to withdraw their deposits on the eve of business suspensions.

Since then, the Financial Supervisory Service (FSS), a watchdog, has dispatched an inspection team to some of the suspended banks to investigate the allegations.

"We received a list of 22 people from the FSS," a prosecution official said, adding prosecutors are investigating whether the customers improperly withdrew money before business suspensions.

A total of about 107.7 billion won (US$99.7 million) in deposits were withdrawn from the seven banks, including top player Busan Savings Bank, during after-business hours a day before they were suspended, according to the FSS.

(Yonhap News)