'Lime CEO Won Jong-jun Arrested on Suspicions of Fund Recycling... Court Cites "Flight Risk"'

Marketing Director's Warrant Dismissed... "No Flight Risk Due to Stable Residence"

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] Won Jong-jun, the CEO of Lime Asset Management, who is responsible for the 'Lime Asset Management Scandal' with estimated damages reaching 1.6 trillion won, has finally been arrested.

On the afternoon of the 14th, Judge Park Won-kyu, in charge of warrants at the Seoul Southern District Court, issued an arrest warrant for CEO Won, stating, "There is a risk of fleeing or destroying evidence," as requested by the prosecution.

However, the arrest warrant for Lee, the head of Lime's Marketing Headquarters, who was requested together with CEO Won, was dismissed, with the court stating, "Since the residence is fixed, there is no risk of flight, and it is difficult to see a risk of destroying evidence beyond the scope of legitimate defense."

According to the prosecution, CEO Won and Head Lee are accused of deceiving investors by pretending to directly invest in overseas trade funds, while intending to use the redemption funds of existing funds, and raised a total of 200 billion won from 18 Lime trade finance funds.

Some investors who invested in Lime funds filed a complaint against CEO Won and others last March, claiming that Lime caused huge losses to customers by selling another fund to prevent the insolvency of the trade finance fund, a so-called 'fund rolling' method.

The prosecution applied charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and the Capital Markets Act, and requested arrest warrants on the 10th.