'Former Philip Asset Chairman Eom Il-seok Dies Amid Stock Sales Allegations Based on False Information'

Negative Benefits Amounting to Approximately 56.3 Billion Won Obtained

[Asia Economy Reporter Gong Byung-sun] Um Il-seok, former chairman of Philip Asset, who was on trial for making unfair profits by selling stocks based on false information, has passed away.

On the 28th, the Suseo Police Station in Seoul announced that Um had taken his own life on the afternoon of the 25th at an office located in Yeoksam-dong, Gangnam-gu, Seoul.

Since May 2018, Um had been on trial for charges including fraudulent unfair trading under the Capital Markets Act. Um, along with two executives and four general managers of the Seoul and Honam headquarters, totaling seven people, were indicted in custody, while the remaining five were indicted without detention.

They are known to have purchased unlisted company stocks at low prices and sold them using false information that "listing was imminent." Through this, from January 2016 to July 2018, they bought stocks worth 158.7 billion KRW and resold them for 376.7 billion KRW. The prosecution viewed the profit of 56.3 billion KRW as gains obtained through fraudulent unfair trading.

Um was also charged with embezzlement and breach of trust in the course of business. He registered his wife as a company employee and paid her 1.7 billion KRW in salary and other payments, bought Air Philip stocks at 500 KRW per share, and resold them to Philip Asset at 12,000 KRW per share. Air Philip, a company created by acquiring a helicopter transport business, increased its capital and operated domestic and international flight routes but accumulated operating losses and went bankrupt.

After being granted bail in May 2019, Um was undergoing criminal trial without detention. After his release on bail, Um was also involved in operating a cryptocurrency exchange.

With Um’s death, the court is expected to dismiss the charges against him. However, trials for the remaining 11 co-defendants will continue. The next trial for Philip Asset officials is scheduled for December 5 at the Gwangju District Court.