Prosecutors Tighten Noose in 'Lime Scandal'... Arrest Warrants Issued One After Another for Those Involved

Focus of Investigation on Locating Former Chairman Lee Jong-pil and Others
Core Suspect's Arrest Expected to Reveal Truth Behind Allegations

[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the suspension of redemptions of Lime Asset Management’s fund worth about 1.6 trillion won is now targeting key figures. The investigation is accelerating as the suspects related to the Lime incident are being steadily detained.

The Criminal Division 6 of the Seoul Southern District Prosecutors’ Office (Chief Prosecutor Cho Sang-won) filed arrest warrants on the 31st against four individuals, including Mr. Lee, who allegedly manipulated the stock prices of listed companies funded by Lime Asset Management’s fund to pocket large sums, on charges of violating the Capital Markets Act.

They are accused of purchasing stocks of listed company E, in which Lime Asset Management’s fund was invested, in advance and manipulating the stock price to gain tens of billions of won. The prosecution is investigating on the grounds that they manipulated the market by acquiring companies through no-capital mergers and acquisitions (M&A) and inflating stock prices through false disclosures.

On the 27th of last month, the Seoul Southern District Court issued an arrest warrant for former Shinhan Financial Investment head Lim, who is charged with violating the Act on the Aggravated Punishment of Specific Economic Crimes (bribery and fraud) and the Capital Markets Act. Lim is accused of receiving 165 million won from Lead as a commission for Shinhan Financial Investment’s investment in Lead together with Lime Asset Management. On the 28th, arrest warrants were also issued for Mr. Sung and Mr. Han, who are accused of aiding the escape by delivering pharmaceuticals and other items to former Vice President Lee, citing concerns over evidence destruction and flight risk.

Additionally, during the prosecution’s investigation, a KB Securities executive was found to have conspired with former Vice President Lee to help him gain hundreds of billions of won. The prosecution plans to summon this individual soon, believing that he conspired with former Vice President Lee to acquire convertible bonds or stocks at much lower prices using Lime’s TRS transaction funds, causing damage to Lime while benefiting designated beneficiaries such as former Vice President Lee.

The prosecution is continuing the investigation viewing the Lime incident as a form of “Ponzi scheme (multi-level financial fraud).” Multiple illegal suspicions, including embezzlement, Ponzi fraud, and breach of trust, are overlapping around former Vice President Lee. Direct investigation of former Vice President Lee is necessary to clearly uncover the substance of the suspicions.

However, securing the custody of former Vice President Lee is problematic. The prosecution suspects that he may have fled overseas and has requested Interpol to issue a red notice. It is also reported that the prosecution is interrogating suspects recently detained not only about former Vice President Lee but also about key figures such as Kim Bong-hyun, chairman of Star Mobility, who is considered the “funding source” of the Lime incident.

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