The arrest warrants for Mr. A, the CEO of Kwangdeok Stable, a network company of Korean Clinics, and Mr. B, the director in charge of finance, who are suspected of fraudulent loans of large sums of money, have been dismissed.

Yoo Chang-hoon, the presiding judge of the Seoul Central District Court, who conducted the warrant examination of Mr. A and Mr. B, who are suspected of fraud under the Aggravated Punishment for Specific Economic Crimes Act, said that it is difficult to recognize the necessity of detention of the suspects in light of the data obtained so far, the attitude of the suspects in acknowledging the overall facts, the fact that it is difficult to say that there is a fear of destroying evidence or fleeing, and the need to guarantee the defendants' right to defense regarding the degree of responsibility given the guarantee and loan structure.

Mr. A is also the son of an active member of the Democratic Party.

However, it is known that the connection between this incident and the lawmaker in question has not yet been revealed.

Prosecutors believe that Mr. A and others made false balance certificates of 2019 billion won to more than 30 Korean medicine doctors who wanted to practice medicine from around 10 and obtained loans of 200 billion won from the Credit Guarantee Fund and others.

Prosecutors suspect that the Credit Guarantee Fund has abused the system to issue a guarantee that can borrow up to 10 billion won if it has 10 billion won in equity through the "preliminary start-up guarantee system."

Gwangdeok Stable, of which Mr. A and others are executives, was established in 2017 and is said to operate 42 affiliated oriental clinics and oriental medicine hospitals nationwide.

(Photo=Yonhap News)