'Kim Bong-hyun 19.5 Billion Won Illegal Support' Lime Asset Management Head Sentenced to 5 Years in Prison

Court: "Serious Damage to Fairness and Trust in Capital Markets"... 3.5 Billion Won Fine

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] A former executive of an asset management company who improperly supported 19.5 billion KRW to Kim Bong-hyun, chairman of Star Mobility, in connection with the 'Lime Asset Management scandal' was sentenced to imprisonment in the first trial.

The Seoul Southern District Court Criminal Division 13 (Chief Judge Shin Hyuk-jae) on the 7th sentenced Kim, former head of Lime Asset Management's Alternative Investment Management Headquarters, who was detained and indicted on charges including breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, to five years in prison and a fine of 3.5 billion KRW in the first trial.

The court stated, "Employees of financial companies are subject to integrity obligations equivalent to those of public officials, and their business and operations have a significant impact on society," adding, "The defendant had a duty to wisely manage investors' assets but committed breach of trust in the course of duty, causing enormous losses."

It also explained the sentencing rationale, saying, "The defendant seriously damaged the fairness and reliability of the capital market, and the nature of each crime is very bad," and "The damage caused by breach of trust in the course of duty is substantial, making corresponding punishment inevitable."

Kim, the former head, was detained and indicted in April on charges of investing 19.5 billion KRW of Lime Asset Management's funds?whose redemption had been suspended since January due to operational failures?into Star Mobility, owned by Chairman Kim Bong-hyun, and assisting in using the funds for purposes other than originally agreed.

The prosecution investigating the case concluded that the former head committed the crimes at Chairman Kim's request. It was found that Chairman Kim used the invested funds to acquire the Veterans Association's mutual aid society and other activities.

It was also identified that Kim, the former head, received golf club membership in Yongin, Gyeonggi Province, from Star Mobility as a reward for supporting the fund.

Additionally, Kim is accused of avoiding losses worth approximately 1.1 billion KRW by disposing of all shares before the disclosure of adverse news about a KOSDAQ-listed company in which Lime Asset Management had invested, after learning of the negative developments in advance.

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