'Rhyme Core' Lee Jong-pil Denies Charges in First Trial: "I Was Not Involved in Stock Sale"

Defense Team "Reviewing Objectivity of Prosecutor's Charges"
"Acknowledges Receiving Money but Job-Relatedness Needs Examination"

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] Lee Jong-pil, former vice president of Lime Asset Management and a key figure in the 'Lime Asset Management scandal' that caused damage worth approximately 1.6 trillion KRW, denied most of the charges in his first trial.

On the morning of the 1st, at the Seoul Southern District Court Criminal Division 12 (Presiding Judge Oh Sang-yong), during the trial on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (bribery) and violation of the Capital Markets and Financial Investment Business Act (loss avoidance), Lee’s defense attorney stated, “It is difficult to admit most of the charges applied to the defendant,” and argued, “The prosecution must clearly establish the standards to determine whether the facts presented were objectively proven.”

Previously, Lee was arrested and indicted on charges of receiving luxury watches, luxury bags, and high-end imported cars from the management of Lead in exchange for making Lime and Shinhan Financial Investment invest in Lead. Additionally, the prosecution revealed during the investigation that Lee had received convertible bond purchase warrants. In total, the value of the money and benefits Lee received is estimated to be around 1.4 billion KRW. Under current law, if the amount received exceeds 100 million KRW, the penalty is aggravated to life imprisonment or imprisonment of 10 years or more.

In response, Lee’s defense attorney said, “Among the money, benefits, and various rights claimed by the prosecution, the defendant admits to receiving only one luxury bag, and denies the rest,” but added, “However, it is necessary to examine whether there is a connection to official duties in the process of receiving these.” He further stated, “Regarding the convertible bond purchase warrants, it is also necessary to review whether the method of calculating the benefit applied by the prosecution is correct.”

Regarding the charge of avoiding losses worth approximately 1.1 billion KRW by disposing of stocks of a KOSDAQ-listed company held by the Lime fund before the disclosure of adverse information using insider information, Lee’s defense denied the charge, stating, “The defendant had no involvement in the decision, timing, or amount of the stock sale,” and “Since the defendant did not perform any acts related to the stock sale, he cannot be held liable.”

Meanwhile, as the prosecution expressed an opinion on additional indictment for Lee’s other crimes on the same day, the trial is expected to be prolonged. So far, the prosecution’s charges do not include Lee’s ‘fraud’ allegations, making it difficult for investors’ losses to be compensated. Therefore, the prosecution is expected to continue the investigation and file additional charges related to investor deception even while the trial is ongoing.

In fact, Lee is also suspected of deceiving investors into believing that returns were steadily generated and selling funds worth 48.2 billion KRW together with Lim Mo, former head of Shinhan Financial Investment’s PBS division, who is already on trial. When asked by the court about the possibility of additional indictments on this day, the prosecution replied, “It is difficult to specify the exact timing, but an investigation for additional indictments is underway.”

The court concluded the trial after scheduling two more trial dates on the 22nd of this month and the 26th of next month to proceed with witness examinations.

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