SEOUL-- The editor-in-chief of the Hankyoreh newspaper stepped down on Monday as one of its senior reporters was found to have borrowed money from a key culprit in a high-profile development scandal.
The resignation of Ryu Yi-geun, the Hankyoreh's chief editor, came three days after the newspaper apologized for the money transaction between its journalist and Kim Man-bae, who is standing trial in connection with the apartment development project in the city of Seongnam.
The Hankyoreh's chief executive, Kim Hyun-dae, said he will step down in early February, when the newspaper picks a successor, to take responsibility for the transaction.
"The trust that Hankyoreh has most cherished is collapsing in an instant," the chief executive said in a statement sent to the newspaper's employees.
The Hankyoreh said its senior reporter borrowed 600 million won from the key culprit in 2019 and has repaid 200 million won so far.
Kim, the key culprit, is the largest shareholder of Hwacheon Daeyu, an asset management company at the center of the highly lucrative project.
He was indicted in 2021, along with his accomplices, on charges that include bribery, embezzlement and breach of trust.
Two close confidants of Lee Jae-myung, leader of the main opposition Democratic Party, were also indicted late last year for taking bribes from them.
Source: Yonhap News Agency