Prosecutors Arrest and Indict LS Securities Executive for Using Non-Public Information

Allegations of Using Official Information for Personal Gain

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Kang Jin-hyeong

The prosecution has arrested and indicted an executive of LS Securities (formerly Ebest Investment & Securities) on charges of using insider information related to real estate PF (Project Financing) projects to pursue hundreds of billions of won in personal gains.

The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Seung-hak) indicted LS Securities executive Kim on the 16th on charges including violation of the Capital Markets Act and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. Co-conspirators, former LS Securities employee Yoo and LS Securities executive Hong, were indicted without detention.

Kim, as a securities company executive, is accused of secretly operating a real estate development company while using insider information obtained through his duties. The prosecution believes Kim embezzled 83 billion won from PF loans, acquiring about 60 billion won of it, and received 550 million won related to his duties as a securities company executive.

Yoo, who was indicted together, is accused of acquiring 15 billion won out of approximately 83 billion won in PF loans. Hong, who worked at the construction company involved in the real estate PF project, is accused of passing the bidding review with false information and participating in the execution of the real estate PF loan funds.