Prosecution to Summon Former Daishin Securities Banpo WM Center Head for 'Lime Scandal' Investigation

Victims of Lime Asset Management funds held a press conference on the 21st in front of the Seoul Southern District Prosecutors' Office in Yangcheon-gu, Seoul, urging the prosecution to conduct a prompt investigation. The victims filed a complaint with the Seoul Southern District Prosecutors' Office against the head of Daishin Securities Banpo WM Center on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and fraudulent trading under the Capital Markets Act. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Yoo Byung-don] The prosecution, investigating corruption allegations in the 'Lime Asset Management Scandal' that caused investors losses amounting to about 1.6 trillion won, plans to summon a former securities firm executive identified as one of the key figures for questioning.

According to the legal community on the 23rd, the Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Cho Sang-won) is reportedly scheduled to summon Jang, the former head of Daishin Securities Banpo WM (Wealth Management) Center, as a suspect for investigation. Jang is known for aggressively attracting investment funds related to Lime, and a recording of a conversation was revealed in which he allegedly stated that a former Blue House administrator from the Financial Supervisory Service was involved in resolving the issue.

The prosecution plans to investigate Jang regarding the related allegations as well as the authenticity of the statements in the recording.

Earlier, Lime fund investors filed a complaint with the prosecution last month accusing Jang of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violations of the Capital Markets Act, claiming that the risks of losses were not properly disclosed during the fund sales process. The prosecution, investigating various suspicions related to the Lime scandal, is said to have obtained and is analyzing conversation recordings between Jang and the affected investors.

Meanwhile, the Lime scandal involves Lime Asset Management hiding the fund's insolvency while selling products through securities firms and banks, eventually leading to a suspension of redemptions and causing massive losses to investors.

Additionally, the prosecution is focusing on clarifying whether several related parties, including former Vice President Lee Jong-pil of Lime Asset Management who is currently absconding, and 'Chairman Kim,' known as Lime's 'money source,' were involved in mismanagement of the fund, various lobbying activities, and 'corporate raider' behaviors.

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