Prosecutors Indict 20 Including SangSangIn CEO Yoon Joon-won on 'Illegal Loan Suspicion'

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution has indicted Yoo Jun-won, CEO of Sangsangin Group, who is suspected of illegal loans, and Park, a former prosecutor turned lawyer, who is suspected of stock price manipulation.

The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Hyung-geun) announced on the 8th that CEO Yoo and lawyer Park were each arrested and indicted on charges of violating the Capital Markets Act (fraudulent transactions, market manipulation).

In addition, the prosecution has indicted 18 related parties, including the CEO of the convertible bond issuing company and accomplices in market manipulation, without detention.

CEO Yoo is under investigation for allegedly granting preferential loans worth over 10 billion won through Sangsangin Savings Bank and Sangsangin Plus Savings Bank, using convertible bonds of the secondary battery company WFM (Double U F M) as collateral in 2018.

The prosecution believes that at the time, CEO Yoo gave preferential treatment to WFM, a fund-related company operated by Cho Beom-dong, the fifth cousin of former Minister of Justice Cho Kuk, expecting to resolve issues such as eligibility screening while acquiring Goldbridge Securities.

CEO Yoo is also accused of issuing personal loans exceeding the legal limit using convertible bonds of WFM as collateral through Sangsangin Savings Bank and Sangsangin Plus Savings Bank.

Park, a former prosecutor turned lawyer, is suspected of attempting to defend the stock price by purchasing hundreds of billions of won worth of Sangsangin stocks using funds from a nominee corporation when CEO Yoo sought to raise acquisition funds for Goldbridge Securities by using Sangsangin Group stocks as collateral.

CEO Yoo and lawyer Park were arrested on the 20th of last month. Judge Kim Tae-gyun, in charge of warrants at the Seoul Central District Court, issued arrest warrants after conducting a pre-arrest interrogation (warrant review), stating that "the main criminal charges are substantiated."

Judge Kim added, "According to the substantiated criminal charges, the actions of CEO Yoo and others have significantly undermined the fairness and reliability of the capital market, making the case serious. Considering the suspects' positions and roles, degree of involvement, and the progress of the investigation so far, the reasons and necessity for detention are recognized."

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