Estimated Embezzlement and Breach of Trust Amount by Lee's Family at 55.5 Billion Won
[Asia Economy Reporter Minji Lee] The prosecution has arrested and indicted independent lawmaker Sangjik Lee (Jeonbuk Jeonju-eul) on charges of causing damage to the company and embezzling company funds by selling Eastar Jet shares to affiliates at a low price. It has been 10 months since the Eastar Jet pilots' union reported the case to the prosecution and 16 days since the lawmaker was detained.
On the 14th, the Jeonju District Prosecutors' Office arrested and indicted the lawmaker on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust and embezzlement), embezzlement in the course of business, and violation of the Political Parties Act.
The lawmaker is accused of selling 5.2 million shares of Eastar Jet stock worth approximately 54.4 billion won in November 2015 at a low price to Eastar Holdings, where his children are shareholders, causing property damage worth about 43.9 billion won to Eastar Jet.
Furthermore, from 2016 to 2018, the lawmaker is alleged to have caused damage worth about 5.6 billion won to affiliates by arbitrarily revaluing bonds held by Eastar Jet affiliates either upward or downward and repaying debts early.
Regarding this, the prosecution believes that the lawmaker maintained control over Eastar Jet by transferring Eastar Jet shares to affiliates where his children are major shareholders.
The prosecution also applied charges against the lawmaker for embezzling more than 5.36 billion won in company funds while being the actual owner of Eastar Jet and its affiliates from 2013 to 2019.
He is suspected of using methods such as falsely registering his mother-in-law as an employee of an Eastar Jet affiliate to embezzle salary. According to the prosecution, this money was used for court deposits related to his elder brother, who was arrested on embezzlement charges, Porsche insurance premiums driven by his daughter, and rental fees for his daughter's officetel. In particular, it was found that the lawmaker spent more than 3.8 billion won for personal lawyer fees and other purposes. The total amount of embezzlement and breach of trust by the lawmaker and his family uncovered by the prosecution amounts to 55.5 billion won.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
