'Rhyme Lobby' Former Lead Chairman Kim Jeong-su Sentenced to 6 Years in Prison and Fined 2.5 Billion Won in First Trial

[Asia Economy Reporter Yoo Byung-don] Former Lead Chairman Kim Jung-soo, who handed over money under the pretext of investment solicitation to financial institutions and embezzled billions of won in the Lime Asset Management scandal that caused asset damage worth 1.6 trillion won, was sentenced to prison in the first trial.

The Criminal Division 12 of the Seoul Southern District Court (Presiding Judge Oh Sang-yong) sentenced former Chairman Kim to six years in prison and a fine of 2.5 billion won on the 18th for violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement, etc.).

The court explained the sentencing reason, stating, "The defendant took tens of billions of won in unfair profits by exploiting corporate raiders blinded by greed and financial institution executives who ignored integrity and fairness," and "The significance of this crime is by no means small in the series of incidents represented by the Lime scandal."

It continued, "The defendant showed no interest in company management and seemed solely focused on securing his share of the investment funds," adding, "It is judged that this influenced the delisting of Lead, which caused enormous damage to many investors."

Furthermore, "The defendant denied the crime throughout the trial, making punishment commensurate with responsibility inevitable," but "considered that it is difficult to see the defendant as the main perpetrator of embezzlement and that there is no prior conviction of the same kind receiving a prison sentence."

Former Chairman Kim is accused of giving money and valuables to former Shinhan Financial Investment PBS Head Lim Mo and former Lime Vice President Lee Jong-pil as a reward for raising funds for Lead, and conspiring with former Vice Chairman Park Mo to embezzle 1.79 billion won from Lead's funds.

He is also accused of arranging for financial institution funds to be attracted to KOSDAQ-listed companies, including Esmo Materials, in which Lime funds were invested, and receiving 2.5 billion won as a reward.