'Sangsangin Illegal Loan' CEO Yujunwon Denies Charges at First Trial
[Asia Economy Reporter Seongpil Cho] Yoo Jun-won, CEO of Sangsangin Group, who was indicted on suspicion of illegal loans, denied the charges at the first trial.
At the first hearing of the case held on the 26th at the Seoul Central District Court Criminal Division 34 (Presiding Judge Heo Seon-ah), Yoo's lawyer argued, "We did not create a fraudulent appearance that could cause market confusion," and "Even if there were errors in the disclosure process, it is the issuer's responsibility, not the savings bank that provided credit."
The lawyer of Park, an attorney who was also indicted along with Yoo on charges including manipulating stock prices to defend the decline of Sangsangin Group's stock price, also stated, "We deny all the charges."
According to the prosecution, from April 2015 to December 2018, Yoo is accused of conducting effectively high-interest secured loans targeting KOSDAQ-listed companies while falsely disclosing that the listed companies had successfully issued convertible bonds (CB) to attract investment funds, thereby damaging the reliability of the capital market. The prosecution identified nine listed companies involved in false disclosures related to CBs amounting to 62.3 billion KRW.
Yoo was also indicted on charges of creating favorable false appearances for a listed company in which he personally held shares in July 2017, then selling the shares to gain a capital gain of 5 billion KRW.
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Previously, Sangsangin Group was pointed out for two consecutive years at the National Assembly audit for suspected crimes related to no-capital mergers and acquisitions. The prosecution launched a full-scale investigation in November last year following a request from financial authorities, and on the 8th of last month, indicted a total of 20 related individuals, including Yoo and Park, in connection with this case.
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