Prosecution Attempts Three Times to Secure Former Chairman Kim's Custody
Twice Rejected... Court Cancels Bail After Escape
Investigation of Kim Younghong and Lee Inkwang Abroad Also Stalled
Kim Bong-hyun, former chairman of Star Mobility, who is wanted nationwide. Photo by Seoul Southern District Prosecutors' Office
[Asia Economy Reporter Yoo Byung-don] Kim Bong-hyun, former chairman of Star Mobility and a key figure in the Lime Asset Management redemption suspension scandal that caused damage worth about 1.6 trillion won, cut off his electronic monitoring device (electronic bracelet) and fled while on trial without detention. Until Kim’s escape, the prosecution attempted three times to secure his custody, but all were dismissed by the court’s decision, which has drawn increasing criticism. With Kim’s flight, it is expected that investigations by the prosecution and police into the three key figures of the Lime scandal will also suffer setbacks.
Kim was arrested and indicted in May 2020 on charges of embezzling hundreds of millions of won from Suwon Passenger Transport and Star Mobility funds and providing money and entertainment to political circles and the prosecution. He was released on bail in July last year. The bail conditions included a deposit of 30 million won, residential restrictions, and attachment of an electronic bracelet to prevent flight.
However, the prosecution judged that Kim was likely to flee as the sentencing date approached due to concerns over a heavy sentence and requested the first arrest warrant on September 14. The court dismissed the warrant, stating, “Kim has attended the trial for over a year after being granted bail without violating bail conditions, and the possibility of evidence destruction is low.” It was also revealed that the judge in charge of the pre-arrest hearing and Kim’s lawyer were high school alumni, which sparked controversy.
Kim Bong-hyun, former chairman of Star Mobility, who is wanted nationwide. Photo by Seoul Southern District Prosecutors' Office
The prosecution added more criminal facts and investigated flight preparations, then re-requested an arrest warrant on the 7th of last month, but the court again dismissed it. The court explained the reason for dismissal, saying, “The purpose of the bail decision must be sufficiently respected, and it is difficult to see any change in circumstances that would justify cancellation (such as flight or evidence destruction) since bail was granted.”
In response, the prosecution requested the court to revoke the bail decision itself on the 26th of last month. The prosecution emphasized, “The bail must be revoked to prevent the flight of the main culprit of the Lime case, which caused great social damage,” and “Kim’s faithful attendance during the trial does not guarantee his appearance at the sentencing date.” The court delayed its judgment and only revoked the bail belatedly at 2:50 p.m. on the 11th, shortly after Kim fled.
Given the situation, criticism has arisen that the court’s judgment on Kim was complacent, especially since former Lime Vice President Lee Jong-pil also fled before his pre-arrest hearing. With Kim’s escape, all three key figures in the Lime scandal have disappeared, making future resolution of the case difficult.
Lee In-kwang, chairman of Esmo, an auto parts company involved in stock price manipulation, and Kim Young-hong, chairman of Metropolitan, a real estate development company operating 14 affiliates and accused of embezzling about 350 billion won from Lime under the pretext of domestic real estate development, remain at large overseas. In particular, although it was expected that Kim Young-hong’s whereabouts would be identified as his associates were successively arrested, the police recently decided to suspend investigations into his associates.
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