A court has rejected an arrest warrant for Sohn Tae-seung, former chairperson of Woori Financial Group, over suspicions of extending inappropriate loans to his relatives, judicial officials said Wednesday.

The Seoul Southern District Court made the decision Tuesday night, citing the need to guarantee Sohn's right to defense over alleged complicity.

The court stated that it is difficult to conclude there is a risk of evidence destruction or flight simply because some of Sohn's statements appear false or he is suspected of destroying evidence in the past.

Sohn is accused of having Woori Bank extend loans worth approximately 35 billion won ($25 million) to corporations and individual business owners related to his relatives between April 2020 and January 2024. He headed the group, which controls Woori Bank, from 2020 to 2023. (Yonhap)