'Raim Kim Bong-hyun Embezzlement Accomplices' Former Officers of Hyanggun Sangjoae Sentenced to 3 and 7 Years in First Trial

Court: "No Recovery for Victims at All"... Guilty Verdict on Charges Confirmed

[Asia Economy Reporter Yoo Byung-don] Former Vice Chairman Jang of Hyanggun Sangjohoe, who was indicted on charges of embezzling hundreds of millions of won in assets after acquiring Hyanggun Sangjohoe, a veterans' mutual aid association, amid the Lime Asset Management redemption suspension incident, was sentenced to imprisonment in the first trial.

The Criminal Division 11 of the Seoul Southern District Court (Presiding Judge Lee Hwan-seung) on the 26th sentenced former Vice Chairman Jang and former Vice President Park of Hyanggun Sangjohoe, who were indicted for violating the Act on the Aggravated Punishment of Specific Economic Crimes, to seven years and three years in prison, respectively.

The court pointed out regarding former Vice Chairman Jang, "After agreeing with Kim Bong-hyun to misuse Hyanggun Sangjohoe funds, he embezzled approximately 37.8 billion won. Among this, about 19.8 billion won has not yet been recovered, and the damage directly affected the executives of Hyanggun Sangjohoe."

It also recognized the charges as guilty, stating, "He sold Hyanggun Sangjohoe and fraudulently obtained 25.5 billion won, and this damage has not been recovered at all."

Former Vice Chairman Jang and others were arrested and indicted on charges of embezzling about 37.8 billion won in assets from Hyanggun Sangjohoe after acquiring it through a no-capital merger and acquisition (M&A) method with former Star Mobility Chairman Kim Bong-hyun, who was identified as the mastermind of the 'Lime incident.'

They were also charged with hiding the embezzlement and reselling Hyanggun Sangjohoe to Company A, receiving 25 billion won as a contract deposit and embezzling it.

Regarding former Vice President Park, who participated in the crime, the court stated, "It is acknowledged as true that he acted under Kim Bong-hyun's instructions and claims he did not gain any personal benefit," but ruled, "Since the damage suffered by Hyanggun Sangjohoe and others is too great, he must bear some responsibility."