Prosecutors Indict Seven Medicox Executives and Employees for Embezzling Over 800 Million Won in Company Funds

Embezzlement Through Ghost Employee Salaries and Arbitrary Use of Corporate Cards
Two Fleeing Chairmen Pursued... About 5.1 Billion Won in Assets Seized and Preserved

Seven executives and employees of Medicox, accused of embezzling over 800 million won in company funds, have been brought to trial.

Prosecutors' Flag. Photo by Yonhap News

On September 26, the Third Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office (acting chief prosecutor Kim Bongjin) announced that seven Medicox executives and employees had been indicted without detention on charges including occupational embezzlement.

They are accused of indiscriminately using 860 million won in company funds by, for example, registering employees under false names to receive money as salaries or arbitrarily using corporate credit cards.

Prosecutors are investigating a case in which Medicox and JNK Industry were acquired without capital, leading to the outflow of approximately 52 billion won in corporate funds.

In July, two Medicox vice presidents, identified as Park and Lee, were indicted and detained on charges including aggravated breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act. Five others, including general manager Hwang, were indicted without detention on charges of arbitrarily using up to 288 million won in company funds.

For the two chairmen who are on the run, arrest warrants have been issued, and prosecution has been suspended while they are being pursued. Prosecutors have seized and preserved approximately 5.1 billion won in assets, including their Gangnam apartments, luxury cars, security deposit return claims, and membership rights. This measure is intended to prevent the dissipation of assets in anticipation of confiscation once a conviction is finalized.

The prosecution stated, "This case involves the acquisition of a listed company without capital under the pretext of promising new businesses, followed by artificial stock price manipulation and the outflow of company funds for illegal personal gain, ultimately leading to delisting and investor losses. We will do our utmost to trace illegally acquired assets and use them to help recover losses for small investors."