Prosecutors Demand 10-Year Prison Sentence for Former Daishin Securities Center Head in Large-Scale Lime Fund Sales Case

Victims of Lime Asset Management funds held a press conference on the 21st in front of the Seoul Southern District Prosecutors' Office in Yangcheon-gu, Seoul, urging "prompt investigation by the prosecution." The victims filed a complaint with the Seoul Southern District Prosecutors' Office against the head of Daishin Securities Banpo WM Center on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and fraudulent trading under the Capital Markets Act. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Yoo Byung-don] The prosecution has requested a 10-year prison sentence and a fine of 500 million won for Jang, the former head of the Banpo WM Center at Daishin Securities, who sold a large volume of funds related to the Lime Asset Management scandal, which caused damages amounting to approximately 1.6 trillion won.

On the 3rd, at a trial held before the 13th Criminal Division of the Seoul Southern District Court (Presiding Judge Shin Hyuk-jae), the prosecution stated, "Despite recognizing the severity of the crime, the defendant avoided responsibility with unreliable statements, making severe punishment inevitable," and made the sentencing request accordingly.

Previously, Jang was indicted while in custody on charges including violation of the Capital Markets Act for emphasizing unconfirmed annual returns using terms such as "guaranteed 8% per year" and "8% fixed interest rate per year," thereby concealing the possibility of losses and selling funds worth 248 billion won.

At the trial, Jang's defense attorney argued, "If Lime Asset Management had complied with the guidelines, the principal would have been almost guaranteed," and requested, "Please consider that the defendant did not receive any financial benefits from Lime Asset Management when determining the sentence."

He also said, "I first met former Lime Vice President Lee Jong-pil around the fall of 2015," adding, "He held various certifications such as the Chartered Financial Analyst, known as the 'judicial exam of the financial industry,' and had extensive industry experience, so I trusted him."

The prosecution pointed out that even after Jang became aware of the problems with the Lime funds in July of last year, he induced customers not to request redemptions. The prosecution stated, "After recognizing Lime's issues, Jang reassured customers with group text messages saying 'there is no problem with the fund,'" and revealed, "In text messages exchanged with Lime representatives, Jang said he would 'absolutely block redemptions.'"

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