[Exclusive] Ostem Implant Employee's Assets Frozen... Court Orders Seizure and Forfeiture Before Indictment

Lee's Real Estate, Stocks, and Deposits Worth Approximately 33 Billion KRW Frozen
Potential Additional Losses Beyond 76.1 Billion KRW Stock Losses Possible ↓

Lee Mo, who is accused of embezzling 221.5 billion KRW from Osstem Implant, is being transferred to the prosecution on the 14th at Gangseo Police Station in Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Yoo Byung-don] The criminal proceeds of Lee Mo (45, detained), an employee of Osstem Implant accused of embezzling 221.5 billion won of company funds, have all been frozen.

On the 18th, the Seoul Southern District Court announced that it had approved the pre-indictment seizure and confiscation preservation requested by the police on Lee’s assets worth around 33 billion won, including real estate, stocks, and deposits. A representative of the Seoul Southern District Court stated, "Most of the requests made by the police were approved," adding, "We cannot disclose specific details."

Earlier, on the 12th, the police applied for pre-indictment seizure and confiscation preservation targeting stocks worth 25 billion won remaining in Lee’s securities trading account, real estate valued at about 8 billion won, and some deposits. Pre-indictment seizure prevents the suspect from disposing of illegally acquired assets such as real estate before the court’s verdict on the charges. Pre-indictment confiscation preservation is a measure to prevent the suspect from disposing of assets so that authorities can collect an amount equivalent to the profits obtained from the crime if the suspect has used such proceeds.

Following the court’s ruling, seizure and confiscation preservation orders were issued on the relevant assets, freezing Lee’s real estate, stocks, deposits, and other criminal proceeds, making it easier to recover the damages.

So far, in addition to the 76.1 billion won loss Lee incurred from stock investments, there could have been additional unrecoverable amounts, but for now, the urgent issue has been addressed. However, there is a possibility of further losses on the frozen stock account containing 25.2 billion won. Since stocks equivalent to that amount have been frozen, profits or losses may occur depending on market conditions.

Meanwhile, on the 14th at around 7:40 a.m., the police transferred Lee to the prosecution on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. According to the police, Lee admitted the charges during recent investigations, stating that “the crime was committed alone to personally obtain money and valuables.” Lee, a member of Osstem Implant’s financial management team, has been detained and investigated on suspicion of transferring 221.5 billion won from the corporate account to his own account in eight installments since March last year.