Entertainment Agency CEO Arrested for Buying Non-Performing Loans with 20 Billion Won Investment from Lime

Embezzlement Allegations of Company Funds

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The CEO of an entertainment agency who purchased non-performing bonds with money invested from the Lime Fund and embezzled company funds has been arrested.

The Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Jo Sang-won) announced on the 31st that they have arrested Kim, the CEO of the entertainment agency, on charges including breach of trust.

Kim is accused of receiving a 20 billion KRW investment from the Lime Fund under the name of the agency he operates and then investing in the non-performing convertible bonds of KOSDAQ-listed company A at the request of Chairman Lee of company A.

The prosecution believes that the convertible bonds of company A had already received a disclaimer of opinion from auditors, rendering them nearly worthless for investment. Additionally, Kim is charged with embezzling 7 billion KRW of funds from company A and his own entertainment agency together with Lee. The prosecution filed an arrest warrant for Kim on the 29th of this month, and the court issued the warrant on the 30th.

Lee had an arrest warrant issued for a different case and is reported to have fled overseas before the investigation of this case began.

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