Prosecutors Detain Former Media Company Chairman Who Fled to US During Lime Investigation

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Seoyul] The former chairman of a media company, accused of illicitly profiting by attracting funds from Lime Asset Management funds, has been arrested.

The Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Lee Seunghyung) indicted former chairman A (42) of Hallyu Times (formerly Sports Seoul) on the 27th for violating the Capital Markets Act.

A is suspected of attracting approximately 26.4 billion KRW from Lime Fund in May 2019 under the pretext of investment funds and obtaining illicit profits. When Hallyu Times, a KOSDAQ-listed company, faced difficulties in raising funds, A circumvented this by procuring Lime Asset Management fund money through other companies, then made false disclosures of favorable individual transactions between these companies to operate as if it were a legitimate investment.

The former chairman is also accused of making false media reports from January to July 2019 regarding new business initiatives such as acquiring an overseas car-sharing service company to boost the stock price.

Additionally, he is charged with hiding side agreements related to the repayment of convertible bonds generated from acquisition payments and falsely disclosing share acquisitions.

After the Lime scandal broke out, the former chairman fled to the United States but was apprehended locally after about three years this year. The prosecution arrested him domestically on the 8th of this month after he was forcibly deported from the U.S. and entered Korea.

The Seoul Southern District Prosecutors' Office stated, "As a financial crime-focused prosecution office, we will continue to cooperate with related agencies to strictly respond to financial and securities crimes and will relentlessly pursue and severely punish financial offenders who attempt to evade criminal punishment by fleeing overseas."