'Rhyme Dolryeomakki' Lee Jongpil-Aided Entertainment Agency CEO Sentenced to 3 Years in First Trial

Court: "Knowing the Deficiencies but Aiding Concealment... Substantial Harm to Multiple People"

[Asia Economy Reporter Yoo Byung-don] The CEO of an entertainment agency involved in Lime Asset Management's 'fund rolling' scheme was sentenced to prison in the first trial.

The Criminal Division 11 of the Seoul Southern District Court (Chief Judge Lee Hwan-seung) on the 5th sentenced Kim Mo (37), CEO of the entertainment agency BS Company, who was indicted on charges including breach of trust and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, to three years in prison.

The court ruled, "The defendant knew about the insolvency of the Lime fund but helped conceal it, causing substantial actual damage to many people."

It added, "He used the invested money to purchase convertible bonds of Hallyu Times, which had no investment value, causing damage to the company," and "He is also recognized as an accomplice in the embezzlement by former chairman Lee Mo of Hallyu Times."

The prosecution reported that Kim, at the request of former chairman Lee, received an investment of 20 billion won in the company's name and then invested it in Hallyu Times, which had a disclaimer of opinion from auditors, causing damage to the company, and referred Kim to trial in August this year.

Previously, former Lime Vice President Lee Jong-pil invested about 25 billion won through Lime's domestic fund 'Thetis No. 2' into corporations operated by former chairman Lee, including Hallyu Times. Later, when Hallyu Times faced delisting due to a disclaimer of opinion from auditors and the fund's loss risk increased, a 'fund rolling' scheme was carried out to cover losses with money from other funds.

During this process, he met Kim through an introduction by former chairman Lee, and Kim was investigated to have acted as a 'channel' for funds by receiving investments from other Lime funds and reinvesting in Hallyu Times, thus participating in the rolling scheme.

The prosecution also included embezzlement charges in the indictment, stating that Kim conspired with former chairman Lee to embezzle about 7 billion won of funds from BS Company and Hallyu Times.

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