Executive of Shinpung Pharmaceutical 'Leading 5.7 Billion Won Slush Fund Creation' Arrested

[Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] The executive director of Shinpung Pharmaceutical, accused of creating a large slush fund, has been arrested.

On the morning of the 29th, Judge Kim Jungmin, in charge of warrants at the Seoul Central District Court, issued an arrest warrant for Executive Director A of Shinpung Pharmaceutical, citing concerns over evidence tampering.

Earlier, Executive Director A was accused of creating a slush fund worth approximately 5.7 billion KRW by inflating prices in transactions with pharmaceutical raw material suppliers and falsifying transaction records.

When the supplier issued tax invoices with inflated raw material prices, Shinpung Pharmaceutical reportedly issued promissory notes corresponding only to the actual prices, accumulating the difference as a slush fund.

After securing A’s custody, the prosecution is expected to verify the actual scale of the slush fund.

Previously, the police investigating the case estimated the slush fund created by Shinpung Pharmaceutical to be around 5.7 billion KRW. The prosecution believes the amount could be much higher, reaching several tens of billions of KRW.

Additionally, the prosecution plans to expand the investigation to determine whether the slush fund was used in the succession process of the owner family, including the involvement of Jang Wonjun, former CEO and son of the late founder Jang Yongtaek.