'Core of Lime Scandal' Kim Bong-hyun's Hidden Assets Worth 6.5 Billion Won Frozen

Prosecution: "Best Efforts to Ensure Crime Damage Compensation is Returned to Victims"

Kim Bong-hyun, former chairman of Star Mobility and a key figure in the Lime Asset Management scandal, is leaving the courtroom after completing the pre-arrest detention hearing (warrant review) related to fraud and violation of the Act on the Aggravated Punishment of Specific Economic Crimes on the morning of September 20 at the Southern District Court in Yangcheon-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] Kim Bong-hyun, the former chairman of Star Mobility and a key figure in the Lime Asset Management scandal, had tens of billions of won worth of concealed assets frozen.

On the 2nd, the Seoul Southern District Prosecutors' Office trial division (Chief Prosecutor Gong Jun-hyuk) announced that it filed a petition for seizure preservation on the 27th of last month for assets estimated at around 6.5 billion won, suspected to have been concealed by former Chairman Kim, who is accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement). The Seoul Southern District Court approved the prosecution's petition on the 31st of the same month.

Seizure preservation is a measure that prevents the disposal of a suspect's property, such as real estate, to ensure that authorities can collect an amount equivalent to the proceeds obtained through criminal activity if the suspect uses those proceeds.

The seizure preservation requested by the prosecution this time covers approximately 6 billion won in cash seized at the time of Kim's arrest, as well as the rental deposit for an apartment owned by Kim in Gangnam-gu, Seoul, two foreign cars, deposits, and stocks, totaling about 6.5 billion won.

Former Chairman Kim was arrested and indicted in May 2020 on charges including embezzling hundreds of billions of won from Suwon Passenger Transport and Star Mobility, and providing money and entertainment to political circles and prosecutors, but was released on bail in July last year. He is accused of embezzling 24.1 billion won in operating funds from the bus company Suwon Passenger Transport, 40 billion won invested by Lime after acquiring Star Mobility, and 37.7 billion won in assets held by the Hyanggun Mutual Aid Association after acquiring it.

A prosecution official stated, "Although seizure preservation of only 6.5 billion won in a 100 billion won embezzlement case may not be fully satisfactory to the victims, we are doing our best to secure the criminal proceeds and the process is ongoing," adding, "We will continue to thoroughly track the defendant's concealed assets to ensure that the criminal proceeds are ultimately returned to the victims and that the criminal profits are completely confiscated."