Four former executives of a credit union for Korean residents were arrested Monday on suspicion of illegally lending more than 300 million yen to another pro-Pyongyang credit union despite knowing the loans would go sour.
Kim Yong Ho, 61, former president of Chogin Aichi credit union, and three former deputy presidents, Kim Hwang, 60, Yuk Cho Nam, 60, and Im Sam Cho, 58, were arrested on suspicion of breach of trust, police said.
The four allegedly conspired with Li Bom Rak, 67, former chairman of the Korean Credit Unions' Association in Japan, and others to extend about 340 million yen in loans in September 1997 via false accounts to Chogin Osaka credit union, which has since collapsed, to cover up bad loans.