Lime Kim Bong-hyun, Accused of Embezzlement and Fraud, Appeals 30-Year Prison Sentence in First Trial

[Asia Economy Reporters Seoyul Hwang and Byungseon Gong] Former Star Mobility Chairman Kim Bonghyun, who was sentenced to 30 years in prison in the first trial for embezzlement and fraud causing damage worth 120 billion won, has decided to file an appeal.

Kim Bong-hyun, former chairman of Star Mobility and a key figure in the Lime Asset Management (Lime) scandal, is leaving the courtroom after completing the pre-arrest detention hearing related to fraud and violation of the Act on the Regulation of Conducting Fund-Raising Business Without Permission at the Southern District Court in Yangcheon-gu, Seoul, last September. [Image source=Yonhap News]

According to the legal community on the 10th, former Chairman Kim submitted an appeal to the Seoul Southern District Court Criminal Division 13 (Chief Judge Sangju Lee) on the same day.

Former Chairman Kim was prosecuted in May 2020 on charges of embezzling 37.7 billion won from the assets held by the Reserve Forces Veterans Association (Hyanggun) mutual aid society between 2018 and 2020, as well as embezzling funds from Star Mobility and Suwon Passenger Transport. According to the prosecution, the amount of damage caused by his embezzlement and fraud reaches 125.8 billion won.

The court sentenced former Chairman Kim to 30 years in prison and ordered the confiscation of 76.9354 billion won in the first trial held the previous day on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement). The court explained the sentencing by stating, "The embezzled funds from multiple companies amount to approximately 99.9 billion won, and Star Mobility is undergoing rehabilitation procedures due to this case, causing enormous damage to investors. The Hyanggun mutual aid society and Suwon Passenger Transport have run out of operating funds and are in a situation where they cannot even cover routine expenses."

Furthermore, the court added, "He attempted to unjustly evade his criminal responsibility by fleeing just before the conclusion of the trial. The defendant meticulously planned and played a leading role in the crime, and it appears that most of the funds were used for personal purposes."

At the sentencing hearing held on the 16th of last month, the prosecution requested a 40-year prison sentence for former Chairman Kim, calling him "an unprecedented fugitive." Kim denied the charges, stating, "I did not embezzle the confiscated funds, and I myself suffered damages; the money was misused."

Former Chairman Kim is identified as a key figure in the Lime Asset Management (Lime) redemption suspension scandal. He is known to have lobbied political circles and the legal community to conceal Lime's losses and manipulation of returns.