On the 26th, in front of the Seoul Central District Prosecutors’ Office in Seocho-dong, Seoul, the OK Financial Group branch of the National Office and Financial Services Workers’ Union is holding a ‘press conference to report to the prosecution allegations of illegal activities such as embezzlement by breach of trust at OK Company.’ Photo = Reporter Kim Jun-ha
The OK Financial Union reported Chairman Choi Yoon and his wife Etsuko Kimura to the prosecution on charges of breach of trust and embezzlement from OK Company.
On the 26th, the OK Financial Group branch of the National Office and Financial Services Workers’ Union held a ‘press conference to report to the prosecution allegations of illegal activities such as embezzlement by breach of trust at OK Company’ in front of the Seoul Central District Prosecutors’ Office in Seocho-dong, Seoul. Lee Ki-cheol, senior vice president of the Office and Finance Workers’ Union, argued that “personal use of corporate cards and assets is a violation of Korean law,” and “this is subject to legal punishment.”
Article 355 of the Criminal Act states that if a person who handles another person’s affairs gains property profits contrary to his or her duties, he or she shall be punished by imprisonment for up to 5 years or by a fine of up to 15 million won. In 2014, the Supreme Court ruled that using a corporate card for personal purposes was a breach of duty.
The OK Financial Group branch then emphasized, “Chairman Jun Yamamoto (Choi Yoon) spent 140 million won on coaches at the Hangzhou Asian Games, but he hardly spends money on employees,” and added, “We have frozen wages for the past three years.” .
Chairman Choi Yoon served as the general manager of the Korean national team for the 2023 Hangzhou Asian Games. Last October, a total of 140 million won was delivered as encouragement to coaches of all 38 sports participating in the Asian Games.
Choi Yoon, Chairman of OK Financial Group. Photo = OK Finance
Kim Joon-young, head of the Yeosu New Industry Division of the Office Finance Workers’ Union, argued, “OK Financial Group affiliates appear to have provided benefits to Mr. Kimura, such as handling monthly rent at home, using corporate credit cards, and providing corporate vehicles, and this amounts to embezzlement.” He continued, “In the October government audit, issues regarding OK Financial Group’s governance structure were raised, and OK Company was put on the chopping block.”
Shin Jang-sik, a member of the Korea Revolutionary Party, also said in an audit of the National Assembly’s Political Affairs Committee last month that “the registered executive of OK Company is Chairman Choi Yoon’s wife, Etsuko Kimura.” He pointed out, “He is registered as an executive.”
Bong Seon-hong, head of the OK Financial Group branch of the Office and Finance Workers’ Union, said, “OK Company’s annual sales are 4 million won and its annual net profit is 5 million won. However, Mr. Kimura receives tens of millions of won in compensation and rides an expensive corporate vehicle,” he criticized. He continued, “Employees suffered from a wage freeze and excessive work, and more than 900 employees resigned, but the company accumulated a huge amount of money as internal reserves.”
OK Company’s profit and loss status in 2023. Annual sales are 4 million won and annual net profit is 5 million won. Data = Financial Supervisory Service Electronic Disclosure System
After the press conference, the union reported Chairman Choi and others to the prosecution on charges of breach of trust and embezzlement from OK Company.
In response to an inquiry from the Dong-A Ilbo asking for their position, an OK Financial Group official responded, “Please refer to what OK Financial Vice Chairman Kim In-hwan said during the government audit.” During the government audit, Vice Chairman Kim explained that “(OK Company) is a company that manages Chairman Choi’s personal assets” and that “it is not a company managed by the group.” He also added, “Because OK Company is a one-person company, I cannot know the specific details.”
According to the Financial Supervisory Service’s Electronic Disclosure System, OK Company, established in 2017, is a company engaged in investment advisory and discretionary investment business. The representative’s name is Etsuko Kimura. The address is an apartment in Seocho-gu, Seoul. Mr. Kimura was a Korean resident in Japan who worked as a Japanese dentist, and married Chairman Choi in 2015.
Reporter Kim Jun-ha [email protected]
**Given the potential complexity of intertwined personal and company finances within OK Financial Group, what specific types of forensic accounting investigations would be most crucial in determining whether embezzlement occurred?**
## World Today News Interview: Allegations Against OK Financial Group
**Introduction**
Welcome to World Today News. Today, we delve into the recent allegations of financial misconduct leveled against OK Financial Group Chairman Choi Yoon and his wife, Etsuko Kimura. We are joined by two esteemed guests:
* **Mr. Lee Ki-cheol,** Senior Vice President of the Office and Finance Workers’ Union, representing the union that filed the complaint with the prosecution.
* **Ms. Park Ji-hye,** a financial law expert and professor at Seoul National University, offering an independent legal perspective.
**Section 1: The Background**
* **Mr. Lee,** could you please elaborate on the specific allegations against Chairman Choi and Ms. Kimura? What evidence led the union to believe these actions constitute breaches of trust and embezzlement?
* **Ms. Park,** from a legal standpoint, what are the key elements that need to be proven to establish breach of trust and embezzlement charges? How strong do you believe the union’s case is based on the information currently available?
**Section 2: The Corporate Structure and Governance:**
* **Mr. Lee,** the article mentions concerns regarding OK Company’s structure. How does this subsidiary function within the larger OK Financial Group, and does its relationship with the Chairman raise any red flags?
* **Ms. Park,** given the complex nature of corporate structures, what are the potential legal pitfalls and ethical dilemmas that can arise when personal assets and company funds become intertwined?
**Section 3: Impact on Employees:**
* **Mr. Lee,** the union alleges that employees have suffered wage freezes and excessive workload while the company enjoys significant profits. Can you elaborate on the impact these financial decisions have had on the morale and well-being of OK Financial Group’s employees?
* **Ms. Park**, how does the principle of corporate social responsibility intersect with these allegations? Does the company have a legal and ethical obligation to prioritize the well-being of its employees?
**Section 4: Transparency and Accountability:**
* **Mr. Lee,** what steps should OK Financial Group take to address these allegations and restore public trust?
* **Ms. Park,** in your opinion, what regulatory measures could be implemented to enhance transparency and accountability within financial institutions, preventing similar situations from occurring in the future?
* **Closing Remark:**
Thank you to both Mr. Lee and Ms. Park for sharing your valuable insights on this complex issue. The allegations against OK Financial Group raise important questions about corporate governance, ethics, and the well-being of employees. We will continue to follow this developing story and keep our audience informed.
