Real Estate PF Loan of 83 Billion Won Leaked Externally... Prosecution Issues Arrest Warrants for Former LS Securities Executives

Prosecutors have moved to secure the custody of three former executives and employees of LS Securities who are suspected of embezzling funds worth hundreds of billions of won using undisclosed information.

Prosecutors have filed an arrest warrant for the fifth cousin of Justice Minister Cho Kuk, a key figure in the 'private equity fund suspicion,' and there are expectations that Professor Jung Kyung-shim, the minister's wife, will soon be summoned. The photo was taken on the 16th at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

According to the legal community on the 22nd, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Seung-hak) filed arrest warrants the day before for three current and former securities company executives and employees suspected of violating the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust).

According to the prosecution, they are accused of using undisclosed information obtained through their duties to directly carry out a real estate project financing (PF) business and embezzling PF loan funds amounting to 83 billion won outside the project operator.

This prosecution investigation began at the request of the Financial Supervisory Service. Last month, they conducted raids at about ten locations, including the headquarters of LS Securities and Hyundai Construction.