Additional Indictments Follow the 'Rhyme Incident'... Prosecutors' Blade Sharpens

Additional Charges of Fraud and Others Filed Against Former Lime Vice President Lee Jong-pil
Focus on Proving Political Connections Centered on Star Mobility CEO Lee Kang-se

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The prosecution's scrutiny is intensifying in the investigation of the 'Lime Asset Management Scandal,' with estimated damages reaching 1.6 trillion won. The prosecution is continuing investigations not only into additional indictments of previously known figures but also into individuals who have not yet come to light.

The Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Cho Sang-won) recently filed additional charges against former Lime Vice President Lee Jong-pil for fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets and Financial Investment Business Act. They also indicted previously detained Lime CEO Won Jong-jun and Marketing Director Lee (not detained) on the same charges.

According to the prosecution, these individuals are accused of deceiving investors by pretending to invest directly in overseas trade funds, while intending to use the redemption funds of existing funds, thereby raising a total of 200 billion won through 18 Lime trade finance funds. Some investors in Lime funds filed a complaint against CEO Won and others in March, alleging that Lime caused massive losses to customers by selling other funds to cover the insolvency of the trade finance funds, a so-called 'fund recycling' scheme.

In the case of former Vice President Lee, he was arrested and indicted on May 12 on charges of receiving bribes under the Act on the Aggravated Punishment of Specific Economic Crimes, accused of investing 30 billion won of Lime funds into the KOSDAQ-listed company Lead and receiving luxury watches, bags, imported cars, and other valuables worth a total of 1.4 billion won. Earlier, the prosecution expressed its intention to add charges related to investor deception in Lee's first trial.

CEO Won, who stood at the center of the case, consistently distanced himself by claiming it was 'a completely different issue from the overseas interest rate-linked derivative-linked securities (DLF/DLS) principal loss incident' or that it was a 'desperate measure to protect customer assets,' but was eventually brought to trial.

Meanwhile, as more than 20 individuals are involved in this scandal, the prosecution plans to continue a rigorous investigation. In particular, the prosecution is focusing on finding connections between this scandal and the political sphere, centering on Lee Kang-se, CEO of Star Mobility and former president of Gwangju MBC (detained and indicted). Lee, considered a 'link' who mediated between former Chairman Kim, suspected of lobbying political and government circles in connection with the Lime case, and ruling party figures, may also face additional indictments.

Additionally, last month, the prosecution arrested Lee Sang-ho, the Democratic Party of Korea's Busan Saha-eul district committee chairman, on charges of receiving bribes from former Star Mobility Chairman Kim Bong-hyun. Lee is accused of receiving 30 million won in illegal political funds and stocks worth approximately 56 million won from a company actually owned by Kim. With Lee, a pro-Democratic Party figure, detained, attention is focused on whether connections between the Lime scandal and the ruling party will be revealed.