Prosecutors: "A Serious Crime Undermining the Order of the Capital Market"
A former executive of a KOSDAQ-listed company has been indicted just before the statute of limitations expired, on charges of embezzling approximately 4.3 billion won from company funds.
According to Yonhap News on October 14, the Criminal Division 3 (Chief Prosecutor Shin Seungho) of the Suwon District Prosecutors' Office Seongnam Branch arrested and indicted Mr. A (49) on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, and indicted two accomplices, including Mr. B (49), without detention.
Mr. A is accused of recording false transactions in Company C's books from July 2015 to December 2020, and transferring 700 million won of company funds to a business registered under his wife's name, as well as remitting 1 billion won to a Vietnamese company account.
Additionally, Mr. A, in collusion with Mr. B under the name of a paper company that he effectively controlled, is alleged to have transferred 1.3 billion won to Mr. B's account between August 2014 and December 2015. They are also accused of personally using 1.3 billion won out of 2.5 billion won in payment for goods that should have been received by a subsidiary of Company C.
As a result of these crimes, Company C was delisted, and numerous investors suffered financial losses. The statute of limitations for most of the charges was set to expire between the end of this month and December.
Through supplementary investigations, including account tracing, prosecutors confirmed that Mr. A's claim of "recycling funds for the benefit of the company" actually served as evidence of embezzlement of subsidiary funds.
A prosecution official stated, "The case was initially referred as a simple breach of trust, but our direct investigation revealed that the executive siphoned off company funds over an extended period, resulting in stock trading suspension and delisting, which caused damage to ordinary investors. This was identified as a serious crime that undermined the order of the capital market."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
