Prosecutors said Wednesday they have arrested the chief of a suspended savings bank over allegations he embezzled billions of won (millions of U.S. dollars) and gave out more than a hundred billion won in illegal loans.

Lim Suk, the chief executive of Solomon Savings Bank, was arrested in Seoul late Tuesday after the prosecution determined he could destroy evidence related to the allegations he embezzled 17 billion won (US$14.5 million) in company funds and issued 150 billion won in illegal loans, prosecutors said.

The arrest came days after prosecutors launched an investigation into Solomon Savings Bank and three other savings banks, after the government suspended their operations on May 6 for alleged irregularities.

Prosecutors said they plan to determine the exact value of money involved in Lim's alleged corruption schemes and reveal how it was used. They also expected to seek an arrest warrant to detain him for further questioning.

Lim, 50, is the second top banking executive to come under prosecutorial investigation in connection with the four suspended banks.

Kim Chan-kyong, the chief executive of the now-suspended Mirae Savings Bank, was arrested last week on charges of embezzlement, after he was caught trying to board a boat to China with 13 billion won in company funds.

Also Wednesday, the government said it will award up to 1 billion won to people who report corruption in financial institutions. (Yonhap News)