Gusta received two new guarantees from Kibo in 2020 and 2021

Second guarantee came even as litigation over failed business was ongoing

Kibo made subrogation payments of 576 million won; recovered only 3 million won

Company declared bankrupt in 2023, yet selected for government support program in 2024

Lawmaker Kim Seong-won calls for review of guarantee screening and post-management

Justice Minister Nominee Kim Seung-won arrives at his confirmation hearing preparation office in Jeokseon Hyundai Building in Jongno-gu, Seoul, on Friday. With Yong Hye-in withdrawing from the gender equality and family minister nomination on Sunday, opposition scrutiny has shifted squarely to Kim. [Yonhap]
Justice Minister Nominee Kim Seung-won arrives at his confirmation hearing preparation office in Jeokseon Hyundai Building in Jongno-gu, Seoul, on Friday. With Yong Hye-in withdrawing from the gender equality and family minister nomination on Sunday, opposition scrutiny has shifted squarely to Kim. [Yonhap]

The Korea Technology Finance Corporation, known as Kibo, paid off more than 570 million won ($428,000) in debt on behalf of Gusta, a company run by Yang Su-jin — the person identified as the key broker in the alleged lobbying scandal surrounding Justice Minister Nominee Kim Seung-won. Of that amount, Kibo has so far recovered only 3 million won.

According to documents obtained Monday by People Power Party lawmaker Kim Seong-won, chair of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee, from the Ministry of SMEs and Startups and other agencies, Gusta received new guarantees through Kibo totaling 585 million won — 300 million won in 2020 and 285 million won in 2021.

In both cases, Yang used the Kibo-backed guarantees to secure loans, and guarantee incidents subsequently occurred. Kibo then made subrogation payments totaling 576 million won to the financial institutions involved.

The fact that Kibo covered nearly the full guaranteed amount yet recovered only a fraction has prompted calls to examine whether the guarantee screening at the time and the subsequent post-management were conducted properly and in accordance with established standards.

According to the lawmaker, Gusta became embroiled in litigation after a hand sanitizer business venture failed in 2020, and in 2022 a court ordered the company to pay Company A approximately 50 million won in goods payments plus delay damages. Gusta received its second new guarantee around July 2021, even as those business difficulties were mounting.

Gusta filed for bankruptcy in November 2023 and received a bankruptcy declaration in December of that year. Bankruptcy proceedings, including bond repayment, are still ongoing, meaning the corporate entity itself has not yet been dissolved.

It has also emerged that Gusta was selected in 2024 — after its bankruptcy declaration — for an "online shopping mall promotional event" supported by the Korea SMEs and Startups Market, a state-backed retail distribution agency. Questions are expected to arise over what criteria allowed a bankrupt company to participate in a government-supported promotional program.

The agency cited only "selection based on business operation standards" as the reason for choosing Gusta. The program does not provide direct subsidies to participating companies; instead, it offers indirect support such as promotional assistance through an implementing organization.

"A total of 576 million won in subrogation payments arose from the two guarantees extended to Gusta, and the amount recovered to date is no more than 3 million won," Kim Seong-won said. "We must verify whether the guarantee screening at the time and the subsequent post-management were carried out appropriately, in line with principles and standards."

He added that given the ongoing controversy surrounding the relationship between nominee Kim Seung-won and Gusta's representative Yang, he would "thoroughly examine, on the basis of objective data, whether there was any preferential treatment or lax screening in the public institution support process — separate from any political allegations."

Amid the growing controversy surrounding nominee Kim — who faces allegations of lobbying on behalf of a new drug clinical trial — a Realmeter poll released Monday showed President Lee Jae Myung's approval rating hitting a record low of 33.8 percent. Support for the Democratic Party of Korea also tumbled.

In a party approval survey conducted Thursday through Friday among 1,003 people aged 18 and older nationwide, the Democratic Party recorded 36.1 percent and the People Power Party 42.1 percent. It marked a renewed reversal in party support ratings, the first such shift since a survey conducted June 25–26.

Realmeter said the Democratic Party's numbers fell in tandem with the president's declining approval, driven by a sharp drop in support among voters in their 20s and among progressive voters, as the ruling party faced compounding burdens from uncertainty over real estate policy and controversy over cabinet appointment nominations.

Both surveys were conducted via automated response on mobile phones. The presidential job approval poll had a margin of error of plus or minus 2.0 percentage points at the 95 percent confidence level, with a response rate of 4.5 percent. The party support poll had a margin of error of plus or minus 3.1 percentage points at the 95 percent confidence level, with a response rate of 3.6 percent. For further details, visit the National Election Survey Deliberation Commission website.


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