ESV Wins First Trial in Damages Lawsuit Against Former Owner... Provisional Seizure Confirmed

[Asia Economy Reporter Yoo Hyun-seok] ESV announced on the 8th that it has filed a claim for damages against former owner Lee Mo, who was indicted on charges of embezzlement and breach of trust, and secured bonds worth approximately 7 billion KRW through a provisional seizure application.

ESV disclosed the day before that its founder and former owner Lee Mo was indicted on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement). The amount involved is around 900 million KRW, which corresponds to 2.50% of the company’s equity capital.

The company stated that since Lee Mo caused significant damage to the company by embezzling salaries under multiple people’s names, it took strong legal measures and has currently won the first trial in the civil lawsuit. Lee Mo has currently deposited about 900 million KRW with the court.

ESV’s legal team explained that they have a legitimate claim for damages and have seized bonds worth 7 billion KRW belonging to Lee Mo. Additionally, although Lee Mo was imposed a supplementary tax of 4 billion KRW by the National Tax Service due to the embezzlement and breach of trust charges, the company also won that lawsuit and has fully recovered the amount. The company explained that the notice of designation as an unfaithful disclosure issuer announced the day before was related to the occurrence of these embezzlement and breach of trust charges and the imposition of fines on the former owner.

The company expressed confidence, anticipating a favorable outcome in the remaining appeal trial and stated that funds could be recovered immediately upon winning. An ESV official said, “We have taken all possible legal measures against Lee Mo, who was indicted for unfair gains through breach of trust and embezzlement,” and added, “If we win, it is expected to have a positive impact on improving the financial structure for the current fiscal year.” Furthermore, the official emphasized the protection of shareholder rights by stating, “ESV will strengthen transparency in internal transactions and promote ethical management to enhance shareholder value and communication.”

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