How Far Has the Prosecution Advanced in the Shinrajen and Lime Investigations?

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Following the general election, the prosecution's investigations into ShillaJen and Lime are gaining momentum, raising expectations for visible results soon.

With the prosecution having secured the custody of most key figures and uncovering the full details of the cases, attention is focused on whether the investigation will go beyond financial damage to reveal the truth behind allegations of power-related corruption.

On the 21st, Yoo Si-min, director of the Roh Moo-hyun Foundation, who is suspected of being involved in ShillaJen executives' 'insider trading,' stated on the foundation's YouTube broadcast that if the prosecution is digging into his involvement in the ShillaJen investigation, they should give up.

There is analysis that the prosecution's ShillaJen investigation has progressed significantly, as evidenced by reactions from Yoo and others in the political sphere.

According to the legal community on the 22nd, the prosecution is accelerating the ShillaJen investigation after the general election. They have secured the custody of most ShillaJen executives identified as central to the allegations and have obtained a substantial amount of key materials through raids.

On the 21st, the Seoul Southern District Prosecutors' Office raided ShillaJen's Seoul office and the residence of CEO Moon Eun-sang, seizing computer files, emails, and other materials. This was the second raid on ShillaJen's office, following one in August last year.

The ShillaJen allegations involve company executives using undisclosed information to sell their shares before the announcement of clinical trial suspensions, which caused the stock price to plummet after soaring on expectations for the immuno-oncology drug candidate 'Pexa-Vec,' thereby avoiding significant losses.

In connection with this, the prosecution arrested former CEO Lee Yong-yoon and former auditor Kwak Byung-hak on the 17th and is expected to soon secure custody of CEO Moon as well.

The prosecution is also rapidly advancing its investigation into the Lime Asset Management redemption suspension incident, estimated to have caused damages of about 1.6 trillion won.

There is speculation that clues to arrest key suspects, former Lime Vice President Lee Jong-pil and Star Mobility Chairman Kim Bong-hyun, will soon be uncovered. They disappeared in November last year and January this year, respectively.

The Criminal Division 6 of the Seoul Central District Prosecutors' Office has arrested, detained, or indicted about ten individuals related to the Lime incident over the past ten days. The prosecution has confirmed the whereabouts and likely escape routes of Lee and Kim through associates, including Sung Mo, who worked as Lee's driver and aided his escape.

On the 16th, Kim Mo, a former Blue House administrator dubbed the 'key man' in the case, was also arrested, and suspicions of political figures' involvement are expected to be clarified soon. Kim, a former Financial Supervisory Service official, was dispatched to the Blue House Economic Secretary's Office for a year starting February last year and is suspected of involvement in the Lime incident.

Inside and outside the prosecution, it is reported that Prosecutor General Yoon Seok-youl has repeatedly emphasized thorough investigations into 'multiple victim financial cases.'

He is personally overseeing the Lime investigation and closely monitoring reports related to the ShillaJen investigation.

On the day of the last general election, he met with prosecution executives and stressed 'political neutrality.' This move is interpreted as sending a message to the prosecution to conduct investigations without wavering, amid concerns that the financial cases currently under intense investigation could expand into 'power-related corruption' cases.