The Hankyoreh newspaper has decided to dismiss a senior reporter for borrowing money from a key culprit in a high-profile development scandal.

The newspaper said Tuesday it decided to fire the reporter during a personnel committee meeting the previous day for violating a duty of integrity and fairness required for journalists, as well as the company's ethics code and work rules to avoid conflicts of interests with news sources.

The reporter, whose identity was withheld, had borrowed a total of 900 million won ($722,311) from Kim Man-bae, who is standing trial in connection with the apartment development project in the city of Seongnam, since 2019, according to the newspaper.

The amount is 300 million won more than the 600 million won that the reporter earlier claimed to have borrowed.

The company said it will expand its fact-finding mission on the case to include outside figures.

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.

The dismissal came one day after Ryu Yi-geun, the Hankyoreh's chief editor, stepped down from the position to take responsibility for the improper money transaction. The company's CEO and President Kim Hyun-dae and two other board members said Monday they will step down as soon as candidates for the next CEO are picked next month.

The newspaper made a public apology Friday for the money transaction. (Yonhap)