Prosecutors Indict Former VIK CEO Over Alleged Choi Kyung-hwan SillaJen Investment Suspicion

[Asia Economy Reporter Kim Heung-soon] Lee Cheol, former CEO of Value Invest Korea (VIK), who raised allegations that former Deputy Prime Minister for Economic Affairs Choi Kyung-hwan invested in SillaJen, has been indicted on defamation charges.

The Criminal Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Byun Pil-geon) announced on the 27th that Lee was indicted without detention at the Seoul Southern District Court on charges of defamation by publication.

Lee, the former major shareholder of SillaJen, claimed in a written interview with MBC reported in April last year that "Former Deputy Prime Minister Choi invested 500 million KRW in SillaJen convertible bonds in 2014, and people around him invested 6 billion KRW." In response, former Deputy Prime Minister Choi filed a lawsuit against Lee and MBC officials immediately after the report, calling it "fake news."

The prosecution investigating the case judged that Lee's claims reported by MBC were false and referred him to trial. Lee was sentenced to 12 years in prison by the Supreme Court in May 2019 for establishing the unauthorized investment firm VIK and deceiving investors by promising fixed returns, raising thousands of billions of KRW, and is currently incarcerated at Seoul Southern Detention Center.