[Exclusive] Embezzled 11.1 Billion Won to Buy Apartment, Gave Family 3 Million Won Monthly

Indicted at the End of Last Year: Former LS Securities Real Estate Finance Executive
Prosecution's Indictment Details 11.1 Billion Won Embezzlement Tied to PF Project
80 Billion Won Spent on Gangnam Apartments, Regular Transfers to Mother as 'Salary'

The former executive of LS Securities, Kim, who was indicted on charges including embezzling hundreds of billions of won from company funds while working in the real estate finance division of the securities firm, reportedly used a significant portion of the money for apartment purchases and rentals, family salaries and taxes, and legal fees, according to the prosecution's indictment.

According to the indictment, Kim established a paper company without the company's knowledge while serving as the head of the real estate finance division (executive director) at LS Securities. While working at the securities firm, he learned about the 'Tanbang-dong development project' and, to embezzle the PF loans involved in this project, he set up several companies that he directly or indirectly controlled, in addition to the special purpose company (SPC) responsible for the project developer role, according to the prosecution's investigation.

The list of Kim's (embezzlement) crimes attached to the indictment includes his mother. Kim regularly transferred 3 million won every month on the 20th day from December 2022 to July of last year, totaling 20 months, to his mother's account through the companies he established. It appears that he listed his mother as a company employee and paid her a monthly salary. Ultimately, he used his position and work status at the securities company to divert funds and pay them as family salaries.

The 'lump sum money' was used for Kim's housing expenses and financial investments. According to the crime list, the prosecution revealed that on September 15, 2023, Kim used 5 billion won from the paper company's funds as a key money deposit for an apartment in Gangnam-gu, Seoul, where he resides. Additionally, on May 30 of the following year, 3.15 billion won was used as a purchase price for an apartment in a similar area, the prosecution stated.

Furthermore, Kim reportedly used development project information obtained while working at the securities firm to invest through paper companies, and received interest payments by creating another company. The crime list records that on October 21, 2022, he embezzled 1.155 billion won related to the 'Gimpo Pungmu development project,' and three days later, on the 24th, 740 million won related to the 'Daejeon Bongmyeong-dong development project.'

The prosecution also stated that Kim used 350 million won of the embezzled funds to pay his income tax, 70,321,110 won for local taxes, and 629 million won for criminal case attorney fees. The prosecution's assessment is that the total amount Kim embezzled for personal use amounts to 11.11994 billion won. Kim was indicted in mid-December last year by the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Seung-hak). Through additional investigations, the prosecution found allegations that Kim gave expensive artworks to the CEO of LS Securities and misappropriated PF loans, leading to the non-custodial indictment of the LS Securities CEO and former vice president on the 7th. Both individuals stated through the company that the allegations are 'not true.'