Shinhan Investment Corp., which was fined in the first trial for negligence in supervisory duties regarding the sale of Lime Fund, has filed an appeal.
On the 23rd, Shinhan Investment Corp. submitted an appeal to Judge Lee Geun-soo of the Criminal Division 3 at the Seoul Southern District Court the previous day. The court sentenced Shinhan Investment Corp., indicted for violating the Capital Markets and Financial Investment Business Act and other charges, to a fine of 50 million KRW on the 15th.
Shinhan Investment Corp. is accused of neglecting its duty of care and supervision while Lim, the former head of the PBS Business Division, concealed fund insolvency and sold 48.2 billion KRW worth of overseas trade finance funds to investors. Shinhan Investment Corp. was subject to the joint punishment provision that penalizes both the perpetrator and the corporation for illegal acts. Lim was sentenced to 8 years in prison by the Supreme Court in December 2021.
The court recognized the violation of the Capital Markets Act related to fraudulent unfair trading as guilty in the first trial and found that Shinhan Investment Corp. failed to exercise sufficient care and supervision to prevent Lim’s actions. However, regarding the unfair business practices, the court acquitted the company, citing Supreme Court precedents that it would be unfair to recognize the corporation’s criminal capacity.
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