[Asia Economy Reporter Heo Kyung-jun] The prosecution has requested an arrest warrant for executive A regarding allegations of slush fund creation amounting to 5 billion KRW at Shinpung Pharmaceutical.
According to the legal community on the 27th, the Criminal Division 7 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Seong Sang-wook) recently requested an arrest warrant for Executive Director A, who oversaw the process of creating the slush fund at Shinpung Pharmaceutical, on charges including embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes.
A is suspected of creating a slush fund worth approximately 5.7 billion KRW by manipulating transaction details, such as inflating prices with pharmaceutical raw material suppliers. A was previously transferred to the prosecution by the police with a recommendation for indictment on charges of embezzlement under the Specific Economic Crimes Act.
Shinpung Pharmaceutical is accused of creating a slush fund worth 5.7 billion KRW over the past decade through false transactions with pharmaceutical raw material companies and inflating raw material prices.
The police, who previously investigated the case, transferred A to the prosecution on charges of embezzlement under the Specific Economic Crimes Act, and the company as a legal entity on charges of violating the External Audit Act. The police also investigated Jang Won-jun, former CEO and son of the late founder Jang Yong-taek, but decided not to indict him.
After taking over the case, the prosecution requested supplementary investigation from the police regarding the involvement of former CEO Jang, but the police ultimately failed to clarify this and notified the prosecution of the same investigation results in August.
The prosecution plans to secure A's custody and investigate the involvement of former CEO Jang and others.
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