High-Priced Foreign Cars at Rare Display

By Park Sae-jin Posted : July 6, 2012, 12:22 Updated : July 6, 2012, 12:22
Korea Deposit Insurance Corporation has a rare display of high-priced foreign sports sedan like a Lamborghini Murcielago LP640, Porsche Carrera S, Mercedes-Benz E350, Ferrari 612, and Dodge Magnum.

Those were all seized from now-defunct Gangwon Domin Savings Bank, which loaned the money for the cars but had to take possession of them when they couldn’t be repaid. Among 17 supercars found in the bank owned garage, the five were seized and a French Bugatti Vevron and two luxurious cars from Swedish supercar maker Koenigsegg were also among them, Wall Street Journal reported.

The cars seized will be put up to auction and the proceeds will help epositors of the fallen bank. Chae Kyu-chul, CEO of the savings bank, was sentenced to seven years in prison in February on charges of breach of duty and providing illegal loans amounting to 68 billion won (or about $60 million).

“There are many reasons behind the bank’s bankruptcy, but one thing that stands out among other troubled savings banks is the CEO’s arbitrary execution of loan provision against those supercars,” said the agency.

It added that the CEO didn’t go through a proper legal process. Even loan-related documents were stored at his private residence, not the bank. Due to weak financial standing since earlier last year, a total of thirteen savings banks have been shut down in South Korea.
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