[Asia Economy Reporter Kim Daehyun] Former Shinpung Pharmaceutical CEO Jang Wonjun stood before the detention hearing on the 27th on charges of embezzling tens of billions of won in slush funds. Jang is the son of the late Jang Yongtaek, the founder of Shinpung Pharmaceutical.
At 10 a.m. that day, Judge Kim Jeongmin of the Seoul Central District Court's warrant division conducted the pre-trial detention hearing for Jang.
About 10 minutes before the hearing, Jang arrived at the court but did not respond to reporters' questions such as "Do you admit the charges?", "How will you explain yourself?", and "What do you think about the possibility of Shinpung Pharmaceutical being delisted?" Instead, he went straight into the courtroom.
The decision on whether to detain him is expected late that night or early the next morning.
The Criminal Division 7 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Seong Sangwook) filed a detention warrant for Jang on the 19th.
Jang is accused of conspiring with executive A (detained and indicted) from April 2011 to March 2018 to create slush funds worth about 5.7 billion won by conducting fictitious transactions with pharmaceutical raw material suppliers and receiving the difference back (charges of embezzlement and breach of trust under the Specific Economic Crimes Act). He is also charged with falsifying Shinpung Pharmaceutical’s financial statements and disclosing false information (violation of the External Audit Act).
The police, who initially investigated the case, estimated the slush fund amount at about 5.7 billion won, but the prosecution believes it could be several tens of billions of won. They also plan to expand the investigation into the possibility that the slush funds were used for succession work within the owner family.
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