[Asia Economy Reporter Yoo Byung-don] The prosecution has frozen assets worth 85.5 billion KRW belonging to Moon Eun-sang, CEO of SillaJen, who is suspected of insider trading, through a provisional seizure order.
According to the legal community on the 3rd, the Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Seo Jeong-sik) filed a provisional seizure order with the court for the assets of CEO Moon and his relative Jo, which was approved.
A provisional seizure order prohibits the disposal of assets to prevent the defendant from hiding illegal assets obtained through crime before the sentence is finalized. The court can issue a provisional seizure order either ex officio or upon the prosecutor's request.
Among the frozen assets, 85.4857 billion KRW belong to CEO Moon, and 19.4321 billion KRW belong to Mr. Jo.
CEO Moon was arrested and indicted on the 29th of last month on charges of acquiring 10 million shares of new shares with warrants (BW) worth 35 billion KRW by using a paper company to circulate funds without his own capital, thereby obtaining unfair profits worth approximately 191.8 billion KRW.
Moon is also accused of inflating patent fees to excessively pay about 2.93 billion KRW of SillaJen funds to affiliated companies, and granting inflated stock options to five acquaintances, from which he received about 3.8 billion KRW in resale profits.
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