Chairman Creating Slush Fund with Cryptocurrency? Hancom Denies "Distortion of Facts"

Sangcheol Kim, Chairman of Hancom Group

[Asia Economy Reporter Buaeri] Kim Sang-cheol, chairman of Hancom Group, has been accused of attempting to create slush funds using cryptocurrency. Hancom immediately refuted the allegations on the 26th, stating that it was "distorted editing and untrue."

One media outlet released a recording of Chairman Kim the previous day, raising suspicions that he is the real owner of ArowanaTech. ArowanaTech is the company that issued the 'Arowana Token' and is a company in which Hancom With has invested. The price of Arowana Token surged more than 1,000 times last April. Chairman Kim lent 10 million won to Yoon Seong-ho, CEO of ArowanaTech, signing a contract that used 100% of ArowanaTech’s shares as collateral.

In the released recording, Kim said, "I own Arowana. There is such a side agreement." He also mentioned about the company’s CEO, "They should have no connection whatsoever with our company." The recording also included Kim’s remarks such as "We also discussed ways to create money by giving 5 million tokens each to 10 people to create slush funds."

In response, Hancom explained, "Due to the negative perception of cryptocurrency, it was burdensome for the listed company Hancom With to take the lead, so CEO Yoon was appointed," and added, "The 10 million won contract was a normal transaction where a monetary loan agreement was signed with CEO Yoon during the initial practical stage of acquiring the company."

The company also stated, "Since the tokens were issued through an overseas corporation, not directly by Hancom With, the term 'side agreement' was used," and clarified, "The expression 'ownership' was used from the owner’s perspective to mean that Hancom With, the holding company of Hancom Group, operates it, not that it was Chairman Kim’s personal company."

Regarding the mention of 'slush funds,' Hancom emphasized, "While seeking a legitimate way to convert tokens into cash through domestic exchanges to cover token operation and service development funds, the term 'slush funds' was mistakenly used to refer to cash."

The company added, "There is absolutely no attempt by Hancom Group or its executives and employees to create slush funds through the cashing out of Arowana Token," and "Strict institutional measures are in place to prevent executives and employees from gaining personal benefits."

Hancom also announced a tough stance against the whistleblower. A Hancom official said, "We have hired a lawyer to file a complaint for attempted extortion by the whistleblower and plan to submit the complaint."