Former CEO of Jungang D&M Affiliate Applies for Bail
A man in his 50s who participated in market manipulation to secure overseas escape funds for Lee In-kwang, chairman of Esmo and the main culprit of the 'Lime Scandal,' has admitted to the charges.
The Seoul Southern District Court Criminal Division 15 (Presiding Judge Yang Hwan-seung) held the first trial session on the 25th for Moon (50), who was indicted on charges including violation of the Capital Markets Act. Most of the eight people, including former prosecution investigator Lee (59), who were identified as key figures in the market manipulation, denied the charges at the first trial session held last month, but Moon partially admitted to the charges on this day.
Moon's side stated, "We generally admit to the overall facts of the indictment" and "We admit to the physical acts among the charges."
However, they added, "There are parts that differ from the facts regarding the amount and scale of the illicit gains," and "The defendant did not actually conspire with other defendants nor receive any profits from this case."
On the other hand, the prosecution argued, "The defendant conspired with co-defendants from 2022 to October 2023 to manipulate the market and obtained illicit gains."
According to the prosecution, Moon is suspected of trading shares of Jungang D&M in December 2022 to prepare escape funds for Chairman Lee, who was fleeing overseas, and then delivering the related profits to Chairman Lee. Together with Lee and others, Moon manipulated the stock price from 580 won to 5,850 won through high-price purchase orders over about a year starting December 2022, earning approximately 14 billion won in illicit gains.
Accordingly, the prosecution arrested and indicted Moon in December last year and brought nine members of the group to trial.
Meanwhile, a bail hearing for Choi (55), former CEO of an affiliate of Jungang D&M and identified as an accomplice, was also held on the same day. Choi had previously applied for bail on the 18th.
Choi's side argued, "There is no risk of flight or evidence destruction," and "There is insufficient evidence regarding the charges as there has been no contact with other defendants, so we request a non-custodial trial to guarantee the right to defense." Choi appealed, "I have sincerely cooperated with the prosecution's investigation" and "Please grant me the opportunity to secure my right to defense."
In contrast, the prosecution rebutted, "Considering the statements and other evidence, the charges are substantiated," and "It is difficult to see any change in circumstances since the issuance of the arrest warrant."
The next trial for these individuals is scheduled for the 16th of next month.
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