'First Trial Related to Lime'... Some Defendants Deny Charges of Manipulating Stock Prices of Investment Firms

Defense Attorney: "There Is a Problem with the Method of Calculating Unjust Profits... Causality Must Be Reexamined"
Trials Related to the Lime Scandal Begin One After Another This Week

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 "prompt investigation by the prosecution." 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] A group accused of manipulating the stock prices of KOSDAQ-listed companies funded by Lime Asset Management (Lime) funds to gain tens of billions of won in illicit profits denied some of the charges at their first trial.

At the hearing held on the 11th at the Seoul Southern District Court Criminal Division 12 (Presiding Judge Oh Sang-yong), the defense attorneys of the four defendants, including Mr. Lee who were indicted in custody, argued, "It is difficult to consider them as co-principal offenders because the degree and duration of involvement in stock price manipulation differ for each defendant," and "There are also issues with the method of calculating the illicit profits."

Mr. Lee's attorney also stated, "There is a need to re-examine the causal relationship between the price manipulation and the occurrence of profits," adding, "We will consult with other attorneys and submit our opinions by the next hearing."

Earlier, the prosecution indicted four individuals including Mr. Lee in custody last month, while one accomplice involved in the crime was tried without detention.

This trial is the first among a series of cases related to the 'Lime incident,' including no-capital mergers and acquisitions and fraudulent fund sales.

They are accused of violating the Capital Markets Act by acquiring the KOSDAQ-listed auto parts company Esmo through no-capital mergers and acquisitions (M&A) via a paper company from July 2017 to March 2018, manipulating the stock price, and illicitly obtaining 8.3 billion won in capital gains.

During this process, they are also charged with repeatedly failing to disclose large stock holdings (changes) reports.

Lime is known to have invested over 10 billion won in the company by purchasing convertible bonds (CB) issued by Esmo.

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