[Exclusive] Whole Family Colludes in Embezzlement... Newly Revealed Details of the Osstem Implant Case

Spent Over 10 Billion Won on Real Estate and Resort Membership Purchases
Unable to Prove Apartment Sale Funds, Suspected Fake Transactions
Sister-in-Law and Younger Sister Added to New Charges in Indictment

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

[Asia Economy Reporter Yoo Byung-don] Specific circumstances have emerged indicating that the family of Lee Mo (44), the finance team leader of Osstem Implant accused of embezzling 221.5 billion KRW of company funds, attempted to conceal the proceeds of the crime. It has also been confirmed that the scale of concealment known to the public differs significantly from the actual situation.

According to the indictment exclusively obtained by Asia Economy on the 23rd through the office of Kim Do-eup, a member of the People Power Party, Lee appears to have mobilized his family members, including his wife Park Mo, his sister-in-law, and his younger sister, to hide the embezzled amount. Among these, the amount spent on purchasing real estate and resort memberships is estimated to be much higher than the previously reported 7.5 billion KRW.

About 10 Billion KRW on Officetels, Commercial Buildings, Apartments, and Resort Memberships

First, in November 2021, Lee’s wife Park applied for the sale of an officetel unit in Wadong-dong, Paju-si, Gyeonggi-do, and purchased one unit for 1.8066 billion KRW. Subsequently, she signed contracts to purchase two unsold units for 874.1 million KRW and 876.8 million KRW respectively, and on December 29 of the same year, transferred 3.5575 billion KRW to an asset trust account under the name of a trust company for the officetel purchase.

One day before the large transfer, on December 28, Park met with employees of a resort membership exchange along with her younger sister and purchased memberships for two resorts under her sister’s name for 311.66 million KRW. Around the same time, Park also signed a contract to purchase a third resort membership through another exchange. Lee then transferred 3.4141 billion KRW to the exchange’s account for the membership purchase and ten years of management fees.

On December 30, Lee withdrew 1.145 billion KRW in checks and cash and handed it to Park, who then purchased a commercial office unit in Wadong-dong, Paju-si. This commercial office was confirmed to have been purchased under Park’s name.

The indictment also includes evidence of the sister-in-law Park and her husband’s involvement. Lee and his wife conspired with Park’s husband, Mr. A, to purchase an apartment in Siksa-dong, Ilsandong-gu, Goyang-si, Gyeonggi-do, for 1.65 billion KRW under the sister-in-law couple’s names. However, when they failed to provide proof of the source of funds, they negotiated with the seller to sign a lease contract with a deposit of 1.2 billion KRW and agreed to issue an IOU for the remaining 450 million KRW. Since Lee transferred the full 1.65 billion KRW to the seller’s account, the prosecution considers this a de facto sales contract.

The total amount spent by Lee and his family on purchasing real estate and resort memberships was 10.07826 billion KRW, which is significantly higher than the previously reported 7.5 billion KRW.

New Charges Against Sister-in-Law and Younger Sister Also Included in Indictment

The indictment also includes new charges applied by the prosecution against Lee’s family. In the case of sister-in-law Park, she is charged with violating the Telecommunications Business Act for providing two mobile phones registered under her and her husband’s names to Lee. Lee’s younger sister is additionally charged with violating the Electronic Financial Transactions Act for transferring a check card registered under her name to Lee’s father (deceased).

Furthermore, detailed information about Lee transferring cash to accounts under his family members’ names was confirmed. From October 7 to December 28, 2021, Lee transferred 3.66983 billion KRW in 59 transactions to four accounts under his wife Park’s name. It was investigated that Park withdrew 240 million KRW in cash at the end of December and handed it to Lee. Lee also transferred a total of 709.93225 million KRW in 15 installments to sister-in-law Park (584.83225 million KRW) and younger sister Lee (125.1 million KRW) from December 3 to 28 of the same year.

Additionally, the indictment states that Lee purchased 855 kg of gold bars for 68.17548 billion KRW at a gold exchange in Paju-si together with his younger sister and concealed them at three locations: his father’s residence, his younger sister’s residence, and a building owned by Lee.

Denies All Charges in Trial: "Did Not Know About Embezzlement"

Meanwhile, Lee and his family are currently on trial at the Seoul Southern District Court, Criminal Division 14 (Presiding Judge Kim Dong-hyun) for violating the Act on the Regulation and Punishment of Criminal Proceeds Concealment, etc.

They completely denied the charges at the first hearing held on the 20th of last month. While admitting that they purchased commercial buildings and officetels with the funds, they claim that Lee was completely unaware that the money was embezzled company funds. Lee’s defense attorney stated, "We deny all charges. It is true that real estate was purchased, but we did not know that the funds were embezzled."

The next trial for them is scheduled for the 31st.