Solar Power Company Executive Charged with Fraud and Embezzlement

An executive of a solar power construction company has been indicted without detention for allegedly securing a fraudulent loan of approximately 911 billion KRW under the pretense of construction costs and embezzling 8 billion KRW of company funds. The Seoul Southern District Prosecutor's Office's Financial Investigation Division announced on March 11 that they have charged 44-year-old Jang Mo with fraud, forgery of private documents, and embezzlement.

Between June 2020 and December 2021, Jang is accused of submitting false opinions to deceive a fund management company, referred to as Company A, into lending him the substantial amount for solar power facility construction. Additionally, from February to November 2021, he reportedly misappropriated around 8 billion KRW from the corporate account for personal use.

Jang established a project management company with employees from his construction firm as representatives, effectively deceiving Company A. This project management company was responsible for overseeing the construction progress and submitting relevant documentation to the fund management company. Operating both the construction and project management companies, Jang created false documents indicating that construction materials had been ordered and submitted misleading progress reports to make it appear that the project was advancing normally. The 900 billion KRW loan was allegedly used for developing solar project rights and repaying existing construction debts.

As the company faced financial difficulties due to reckless expansion and delays caused by the COVID-19 pandemic, it struggled to pay subcontractors and accrued debts from private investors. Despite these challenges, Jang transferred approximately 8 billion KRW of company funds to his personal account to purchase virtual assets.

Upon receiving a report from the Financial Supervisory Service, prosecutors conducted account tracking and accounting analysis, uncovering the forgery and the amount misappropriated. A prosecutor stated, 'We will strictly punish illegal activities by corporate executives, including loan fraud for personal gain and misappropriation of corporate funds.'