A former head of the defunct Chogin Tokyo Credit Union postponed entering a plea Wednesday to charges of embezzling 837 million yen but pleaded guilty to obstructing an inspection of the credit union's books.
Chong Gyong Saeng, 64, who was president of the credit union, which mainly served North Korea-related residents in the Tokyo area, pleaded guilty to obstructing a 1998 inspection by the Tokyo Metropolitan Government.
Chong entered the plea during his first trial session before the Tokyo District Court.
Sin Byong Jung, 54, another former head of Chogin Tokyo who is on trial with Chong, pleaded guilty to embezzlement and obstruction.
The two stand accused of illegally diverting 837 million yen from the union's funds in the form of fake loans to 23 firms and individuals on 13 occasions from 1994 to 1998, in conspiracy with Kang Young Kwan, 67, former financial bureau head of the pro-Pyongyang General Association of Korean Residents in Japan (Chongryun). Some of the diverted money may have gone to Chongryun, but investigators have not tracked down who received the funds.
The credit union, which was established in 1952 and collapsed in May 1999, was effectively under Chongryun's control, according to police.
Kang allegedly ordered the top Chogin Tokyo officials to embezzle the money.
His first trial session is scheduled for today.
Last Friday, seven people, including a former chairman of the Korean Credit Cooperative Association, pleaded guilty to charges of breach of trust in connection with illegal loans extended by Chogin credit cooperatives, including the now-defunct Chogin Osaka Credit Union, at their first trial session before the Kobe District Court.