Arrest Warrant Issued, Detention Warrant Dismissed
Prosecutors: "Seemingly Allowed Minimum Forced Measures"
Interest in Possibility of Bail Cancellation Request
[Asia Economy Reporter Yoo Byung-don] Concerns are rising over the progress of trials and investigations related to Kim Bong-hyun, the former chairman of Star Mobility and a key figure in the Lime Asset Management scandal involving the suspension of redemptions worth around 1.6 trillion won, after he avoided detention.
On the 20th, Hong Jin-pyo, the warrant judge at the Seoul Southern District Court, held a pre-arrest detention hearing (warrant substantive examination) for Kim, who is accused of fraud and violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission, and dismissed the prosecution's request for an arrest warrant.
Judge Hong stated the reason for dismissal, saying, "Although the charges are serious and appear to be substantially proven, it is not easy to consider that there is a risk of evidence destruction," and "Considering that it is difficult to conclude that he violated bail conditions over a period exceeding one year, it is hard to see the necessity and appropriateness of detention at this stage."
Before the substantive hearing, the court had issued a summons warrant requested by the prosecution citing "risk of flight," so it was expected that the arrest warrant would also be granted, but the result was contrary to expectations.
Earlier, the prosecution filed a pre-arrest warrant request on the 14th of this month, accusing him of deceiving about 350 people by promising principal and returns on investments in unlisted stocks between 2017 and 2018, embezzling about 9 billion won. The warrant hearing was originally scheduled for the 16th, but Kim did not appear in court that day, requesting a postponement due to the additional appointment of a lawyer.
Accordingly, the prosecution, considering the risk of flight, executed a summons warrant at his residence on the morning of the hearing day.
Immediately after the warrant dismissal, the prosecution stated, "The charges are serious and appear to be substantially proven," but also noted, "It seems that the principle that coercive measures in investigations are allowed only within the minimum necessary scope was reflected."
Given the situation, concerns are being raised about the dismissal of the arrest warrant despite Kim’s poor conduct, including unilateral non-appearance at trials after having been detained once and released on bail. It was expected that his detention would accelerate several related trials, but the dismissal of the warrant has halted this.
Kim was detained and indicted in May 2020 on charges including embezzling hundreds of millions of won from Suwon Passenger Transport and Star Mobility funds and providing money and entertainment to politicians and prosecutors. He was released on bail in July this year and has been undergoing trial without detention. The first trial verdict related to allegations of entertaining current and former prosecutors is scheduled for the 30th of this month. Since Kim’s bail release, these trials have been postponed several times, and no results have been reached for nearly two years.
Accordingly, attention is focused on the prosecution’s future response. Since the arrest warrant for the newly revealed charges was dismissed, there is a possibility that the prosecution may request the cancellation of bail. According to the Criminal Procedure Act, the court may cancel bail upon the prosecutor’s request if "the defendant fails to appear without justifiable reason after being summoned."
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