Sentencing Today in First Trial for Key Figures Lee Jong-pil, Former Vice President, and Won Jong-jun, CEO, in the 'Rhyme Scandal'

Prosecution Seeks 15 Years for Lee Jong-pil, 10 Years for Won Jong-jun
Lee Jong-pil: "From Setup to Failure, Followed Shinhan Investment's Instructions"

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The first trial verdict for former Lime Asset Management (Lime) Vice President Lee Jong-pil, identified as a key figure in the 'Lime Asset Management scandal' that caused damages worth approximately 1.6 trillion KRW, will be announced on the 29th.

The Seoul Southern District Court Criminal Division 12 (Presiding Judge Oh Sang-yong) will hold the sentencing hearing for former Vice President Lee and Lime CEO Won Jong-jun at 11 a.m. on the same day.

Since May 2017, Lime invested in five overseas trade finance funds, including the International Investment Group (IIG) fund, using fund investment money and Shinhan Financial Investment's total return swap (TRS) loan funds.

Among these, the IIG fund became insolvent, and former Vice President Lee and others were indicted on charges of continuing to sell the funds by changing the management method to conceal the insolvency despite being aware of it.

At the previous sentencing hearing, the prosecution requested a 15-year prison sentence, a fine of 3 billion KRW, and a confiscation amounting to approximately 1.44 billion KRW for former Vice President Lee, stating, "The defendant's crime goes beyond simple incomplete sales; it actively deceived victims by concealing the fund's insolvency and selling the fund with false information to secure redemption payments."

For Lime CEO Won Jong-jun and Mr. Lee, who worked as the head of marketing and were also indicted, the prosecution requested prison sentences of 10 years and 7 years, and fines of 500 million KRW and 300 million KRW, respectively.

The defense for former Vice President Lee pleaded for leniency, stating, "We had no choice but to trust and follow the judgment of Shinhan Financial Investment, which held the initiative from the fund's establishment to the response after the insolvency occurred."

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