[비즈한국] Controversy is mounting over the "mysterious affiliates" of OK Financial Group, which is currently attempting to pivot from a loan-focused business to a comprehensive financial services firm. At the center of OK Financial Group’s governance structure is Chairman Choi Yoon, the group's designated controlling figure (head), with his relatives holding stakes in various subsidiaries. Following allegations raised against these family-linked affiliates during this year's National Assembly audit, attention is focused on whether the truth will be uncovered after the labor union filed a complaint against Chairman Choi and his wife on charges including breach of trust and embezzlement.
On November 26, the OK Financial Group labor union (the OK Financial Group branch of the Korean Financial Industry Union) filed a complaint with the Seoul Central District Prosecutors' Office against Chairman Choi Yoon and his wife, Atsuko Kimura, for breach of trust and embezzlement. The move comes amid allegations that while Kimura was listed as an executive for an OK Financial Group affiliate, she did not perform any actual duties and instead misused corporate credit cards and vehicles.
At the heart of the suspicion is the veiled affiliate, OK Company. Established on November 17, 2017, OK Company is a financial firm engaged in trust and collective investment businesses. Chairman Choi Yoon holds a 100% stake (6,000 shares), and his wife, Kimura, is the company's sole executive (internal director). Furthermore, the company's registered address is identical to Kimura's private residence. From August 2017 to August 2023, Kimura also served concurrently as an internal director at X-In Housing, another affiliate involved in real estate and investment businesses.
OK Company was also brought under scrutiny during the National Assembly audit. When Rep. Shin Jang-sik of the Rebuilding Korea Party asked about the true nature of OK Company, OK Financial Group Vice Chairman Kim In-hwan replied, "It is a company that manages Chairman Choi Yoon's personal assets." When Rep. Shin pointed out, "Despite Kimura living as a housewife in Korea, she served as an internal director for both OK Company and X-In Housing, receiving remuneration and corporate credit cards from the firms," Vice Chairman Kim avoided a direct answer, stating, "As it is not a company managed by the group, I cannot know the details."
Based on this, the labor union raised suspicions of illicit profiteering by Chairman Choi's family. With 2023 revenue of 4 million won, an operating loss of 126 million won, and a net profit of 5 million won, OK Company’s figures are so negligible that it is difficult to see it as a functional business entity, given the scale of the group.
During the same period, X-In Housing recorded 3.9 billion won in revenue and 500 million won in operating profit, yet ended the year with a net loss of 8.1 billion won. As of 2023, the company had only two employees. Pointing to the poor performance, the union argued that if Kimura received remuneration as an internal director of both companies without attending board meetings or performing duties, it constitutes professional embezzlement.
Bong Seon-hong, head of the OK Financial Group labor union branch, said, "OK Company and X-In Housing were largely unknown until the group was designated as a large business group in 2022, which brought them to light. Among employees, rumors regarding the Chairman’s wife’s use of corporate credit cards and vehicles were already widespread."
At a press conference regarding the complaint, Kim Jun-young, head of the Financial Services Labor Union’s Banking Division, emphasized, "Internal accounts suggest that various affiliates, including OK Company, have provided unfair benefits such as covering home rent, and facilitating the use of corporate cards and vehicles. This is a private misappropriation of corporate assets."
Branch head Bong added, "If embezzlement occurred, it could only have been possible with the connivance and collusion of Chairman Choi Yoon, who owns 100% of the shares in OK Company. If the Chairman also enjoyed these benefits, he must bear responsibility for professional embezzlement and breach of trust."
After showing no real business activity, OK Company began funding other affiliates this year. It purchased private bonds from OK F&I Loan—a company that buys non-performing loans and is 100% owned by X-In Housing—on three occasions in February, May, and August, effectively lending it capital. The private bonds were traded for a total of 1.9 billion won.
As of 2023, OK Company’s financial status shows a capital of 30 million won and assets of only 2.6 billion won. Regarding this lending, the OK Financial Group labor union pointed out, "Even if OK Company claims to be an investment firm, aside from lending funds—which were invested by Chairman Choi—to another affiliate, OK F&I Loan, and collecting interest, it is unknown what this company actually does. Chairman Choi is suspected of engaging in internal trading and profiteering by investing his own money into his own subsidiary, OK F&I Loan, and then receiving interest back."
OK Financial Group appears to be responding cautiously to the controversies surrounding Chairman Choi’s family-linked affiliates like OK Company and X-In Housing. It was confirmed that the group omitted or delayed submitting some of the affiliate status materials requested by lawmaker offices ahead of the audit. For instance, while the status of concurrent executive positions was submitted, details regarding executive compensation were excluded.
OK Financial Group has not issued an official statement regarding the breach of trust and embezzlement complaints filed against Chairman Choi and his wife. An official from OK Financial Group only stated, "Regarding OK Company, we consider the explanation provided by Vice Chairman Kim In-hwan during the National Assembly audit to be sufficient."