Police have launched a compulsory investigation into the National Agricultural Cooperative Federation (Nonghyup) over allegations that it used corporate funds to cover legal fees for its employees.
The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency raided the compliance support division at Nonghyup's headquarters in Jung-gu, central Seoul, on Thursday, according to police.
The raid was conducted to investigate allegations of misappropriation of corporate funds in connection with a criminal case involving a Nonghyup employee, sources said. The Ministry of Agriculture, Food and Rural Affairs had earlier identified indications that 320 million won in corporate funds was used to pay legal fees for a personal criminal case involving an employee identified as A, during a comprehensive audit of Nonghyup. The ministry referred the case to police in January this year.
Police are examining A on suspicion of occupational embezzlement. Investigators plan to continue their probe based on the seized materials.
