Police have received a complaint and launched an investigation into allegations surrounding Kim Yong-nam, a candidate for the by-election in Pyeongtaek, Gyeonggi Province, representing the Democratic Party of Korea, concerning the alleged operation of a "nominee-owned loan company."

Pyeongtaek Police Station in Gyeonggi Province [Photo courtesy of Gyeonggi Nambu Provincial Police Agency]

The Pyeongtaek Citizens' Foundation, a civic group in the Pyeongtaek region, announced on the 24th that it had filed a complaint against candidate Kim on charges of violating the Act on Registration and Financial Consumer Protection of Loan Business, and of making false statements under the Public Official Election Act.

In its complaint, the Pyeongtaek Citizens' Foundation asserted, "Candidate Kim is suspected of effectively owning and operating a loan company through an agricultural corporation in which he holds a 90% stake. Candidate Kim's actions to conceal these suspicions constitute a serious crime that obstructs the rational choice of voters."

A recent media report raised suspicions that candidate Kim had received dividends while operating a loan company under a nominee name through the agricultural corporation he owns.

In response, candidate Kim refuted the allegations, stating, "This is entirely untrue. The establishment and operation of the company were conducted normally in accordance with legal procedures."

Police plan to review the contents of the complaint and investigate the detailed circumstances of the case.