Former Shinhan Financial Investment Executive Involved in 'Rhyme Incident' Arrested: "The Matter Is Very Serious"

First Suspect Detained Since Incident... Prosecution Investigation Expected to Accelerate

[Asia Economy Reporter Yoo Byung-don] A former executive of Shinhan Financial Investment was arrested on the 27th on charges of selling funds without disclosing their insolvency in connection with the Lime Asset Management scandal.

This is the first suspect to be detained since the prosecution began a full-scale investigation into the Lime incident.

Park Won-kyu, the chief judge in charge of warrants at the Seoul Southern District Court, held a pre-arrest detention hearing (warrant substantive examination) for former Shinhan Financial Investment PBS Division Head Lim Mo on the morning of the same day and issued an arrest warrant.

Judge Park explained the reason for issuing the warrant, saying, "There is a risk of evidence destruction or flight," and "The matter is very serious."

Former Division Head Lim is accused of deceiving investors who subscribed to funds through Shinhan Financial Investment by making them believe they were directly investing in overseas trade finance funds, thereby obtaining 48 billion KRW.

He is also charged with receiving 165 million KRW from Lead, a KOSDAQ-listed company, as a reward for investing in Lead together with Lime Asset Management through Shinhan Financial Investment.

It is known that former Division Head Lim was also involved in designing the structure of Lime Asset Management funds.

With Lim's detention, the prosecution's investigation is expected to gain momentum.

The prosecution began this investigation after detecting signs of Lime Asset Management's involvement while investigating an embezzlement case worth 80 billion KRW at Lead, a KOSDAQ-listed company, at the end of last year.

However, it is reported that the investigation faced difficulties progressing due to the failure to secure the custody of key suspects, including former Lime Asset Management Vice President Lee Jong-pil.

Meanwhile, the prosecution apprehended two individuals who assisted former Vice President Lee's escape on the afternoon of the same day and requested arrest warrants for them.