[Asia Economy Reporter Yoo Byung-don] Kim Bong-hyun, former chairman of Star Mobility, and Lee Jong-pil, former vice president of Lime Asset Management, key figures in the 'Lime Asset Management Scandal' that caused damage worth 1.6 trillion KRW, have been apprehended. They had been on the run since the end of last year.
The Intelligent Crime Investigation Unit of the Gyeonggi Southern Provincial Police Agency arrested former chairman Kim and former vice president Lee around 9 p.m. on the 23rd at an undisclosed location in Seoul.
Kim, identified as the financial source of Lime Asset Management, was separately charged with leading an embezzlement case involving 16.1 billion KRW at Suwon Passenger, a bus company in Gyeonggi Province. Although an arrest warrant was issued in December last year, he did not appear for the warrant hearing and went into hiding, fleeing from authorities.
Lee fled after an arrest warrant was issued in November last year on charges of involvement in an 80 billion KRW embezzlement case at Lead, a listed company targeted by Lime Asset Management's investments.
With the detention of Kim and Lee, who are identified as core suspects in the Lime scandal, the prosecution's investigation is expected to accelerate.
The Lime scandal involves Lime Asset Management selling products through securities firms and banks without disclosing the fund's insolvency, ultimately leading to a suspension of redemptions and causing massive losses to investors. The scale of redemption suspension by Lime Asset Management amounts to 1.6 trillion KRW.
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