Prosecutors Conduct Search of Center Director's Home Over 'Cheong Yuchak Suspicion'

Prosecutors Conduct Search of Former Daishin Securities Banpo WM Center Director's Residence

[Asia Economy Reporters Byungdon Yoo, Seungyoon Song] On the 19th, it was reported that the prosecution investigating the Lime Asset Management scandal conducted a search and seizure of the former head of Daishin Securities Banpo WM Center, Jang Mo's residence and other locations. Former Center Head Jang is a figure who raised suspicions of 'regime collusion' by mentioning Blue House officials during conversations with fund victims.

According to the prosecution on the 19th, the Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Sangwon Jo) reportedly conducted a search and seizure of former Center Head Jang's residence and mobile phone on the 27th of last month. This search and seizure appears to be an effort by the prosecution to determine whether there are more Blue House or financial regulatory officials involved in the case. The prosecution, having already secured recorded conversations between former Center Head Jang and the victims, is currently collecting detailed cases of fund victims. A prosecution official stated, "We cannot confirm detailed information regarding ongoing investigations."

The timing of the prosecution's search and seizure of former Center Head Jang coincided with the day they searched the headquarters of Daishin Securities, Woori Bank, and KB Securities, which are sales companies of the Lime operating fund. Previously, on the 19th of last month, the prosecution conducted a first round of searches and seizures at the headquarters of Lime Asset Management, Shinhan Financial Investment (Shinhan Investment), and the Financial Supervisory Service, followed by a second round of extensive searches and seizures targeting the sales companies.

The Banpo WM Center is where Lime operating funds worth about 1 trillion KRW were sold, and former Center Head Jang held multiple investment briefings there to sell the funds. In particular, he recently met with investors several times to alleviate their concerns and dissuade them from requesting redemptions. During this process, he reportedly reassured investors by mentioning former Blue House administrative officer Kim Mo, who previously worked at the Financial Supervisory Service. The prosecution has secured recorded conversations between former Center Head Jang and an investment victim, which include such circumstances. The prosecution plans to decide whether to summon former administrative officer Kim after completing the analysis of these recordings.

During the investigation into the embezzlement allegations of approximately 80 billion KRW involving the management of the KOSDAQ-listed company Lead, the prosecution uncovered evidence suggesting that Lime Asset Management executives were involved in the crime and has been conducting investigations accordingly. Six individuals, including Lead Vice Chairman Park Mo, have already been indicted. Former Lime Vice President Jongpil Lee and Kim Mo, chairman of Star Mobility, who led the design and operation of the Lime fund, have evaded summons from investigative authorities and are currently at large.

Previously, in November of last year, the prosecution requested an arrest warrant for former Vice President Lee, but he did not appear for the warrant hearing. He has been missing for four months since then. The prosecution is focusing on locating him along with Shinhan Financial Investment PB alumnus CEO Sim Mo and others.

This content was produced with the assistance of AI translation services.