Prosecutors Conduct Search and Seizure at KOSDAQ-Listed HNT Related to Lime Scandal

[Asia Economy Reporter Yoo Byung-don] The prosecution is conducting a search and seizure of HNT, a KOSDAQ-listed company, in connection with the Lime Asset Management case.

The Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Cho Sang-won) announced that from 10 a.m. on the 9th, they are carrying out a search and seizure at the Seoul headquarters and offices of HNT, a company specializing in camera modules.

The prosecution is reportedly investigating whether suspects related to the Lime incident were involved in the process of changes in the company's shareholding and whether investment funds from Lime Asset Management were used.

The prosecution recently strengthened the investigation personnel for the financial fraud allegations related to Lime Asset Management. The search and seizure of HNT is also seen as part of a focused inspection. In February, the Capital Market Investigation Team of the Financial Services Commission investigated Route One Plus, which appears to be connected through the shareholding structure of Kodyem, a KOSDAQ-listed company, for no-capital mergers and acquisitions and its connection with Lime Asset Management. The largest shareholder of HNT is ENK Consortium, a subsidiary of Kodyem.

Meanwhile, on the 23rd of last month, HNT received a refusal of opinion on its 2019 individual financial statements from an external auditor based on a non-appropriateness of the internal accounting control system review opinion. Accordingly, the Korea Exchange suspended trading citing grounds for delisting, but HNT filed an objection, stating that there is no problem with business progress.