[Asia Economy Reporter Lee Jung-yoon] Kim Mo, former CEO of Esmo, a KOSDAQ-listed company, who was indicted for manipulating Esmo's stock price to gain hundreds of billions of won in illegal profits and embezzling company funds, denied most of the charges in court.
On the 5th, at the first trial held at the Seoul Southern District Court Criminal Division 12 (Presiding Judge Oh Sang-yong), Kim's defense stated, "We deny most of the charges except for the omission of large stockholding reports."
Kim, regarded as the actual owner of Esmo, was prosecuted on charges of conspiring with Chairman Lee Mo, who is currently on the run, to acquire a KOSDAQ-listed company through a no-capital M&A, manipulating the market by distributing false press releases, and selling convertible bonds to gain illegal profits.
Additionally, he is accused of distributing false press releases claiming to supply parts for Tesla electric vehicles through overseas companies, then using the invested capital not for new business ventures but to purchase shares in other listed companies. The indictment also states that he embezzled company funds through false service contracts and provided tens of billions of won obtained through loans to Chairman Lee, who used the money for gambling funds and other purposes.
Kim's defense argued, "He was not directly involved in distributing press releases related to new business initiatives," and "There was no conspiracy with Chairman Lee or others to conduct no-capital M&A or stock price manipulation."
Meanwhile, the group previously indicted for stock price manipulation at Esmo mostly received prison sentences in the first trial. Lee Mo, who led the manipulation, was sentenced to 12 years in prison and fined 180 billion won.
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