Prosecutors Reassign Appeal Case on Konkuk University’s 12 Billion Won Investment in Optimus

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution has been reviewing for three months an appeal case related to Yoo Ja-eun, chairman of the board of directors of Konkuk University Foundation, who was accused of investing 12 billion KRW in the Optimus Fund without the approval of the corporate board and the Ministry of Education, but was cleared of charges.

According to the legal community on the 28th, the Seoul High Prosecutors' Office recently reassigned the appeal case against Chairman Yoo and Choi Jong-moon, former president of 'The Classic 500,' a real estate profit business under the Konkuk University Foundation, to a new prosecutor within the criminal division.

The Classic 500 invested 12 billion KRW of rental deposit funds, which should have been kept as fixed deposits, into the Optimus Fund through NH Investment & Securities in January last year.

During an on-site investigation in September last year, the Ministry of Education reported to the prosecution that the Konkuk University Foundation improperly managed its basic property for profit, causing The Classic 500 to incur investment losses and operated the board of directors inadequately. The Health and Medical Workers' Union Konkuk University Chungju Hospital branch also filed a complaint against Chairman Yoo and former President Choi.

The Seoul Eastern District Prosecutors' Office, which investigated the case, dismissed charges against Chairman Yoo and others in May.

The 12 billion KRW rental deposit invested by Konkuk University was judged to be 'ordinary property,' which does not belong to the basic property, so approval from the competent authority was not required at the time of investment, and it was determined that the investment funds were neither used for personal purposes nor intentionally caused losses.