Police Arrest Corporate Raider Who Disappeared After Lime Stock Manipulation

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] A corporate raider involved in stock manipulation and corporate raiding related to the 'Lime Asset Management (Lime) scandal' has been arrested by the police.

According to the police on the 30th, the Songpa Police Station in Seoul arrested Cho Mo (41), who was wanted on charges including violation of the Capital Markets Act, at an officetel in Songpa-gu early that morning.

Cho is known to have formed the 'Root One Investment Association' with Chairman Lee Mo, the actual owner of Esmo, acquiring Esmo and attracting hundreds of billions of won in investment funds from Lime through the issuance of convertible bonds (CBs).

As the stock prices of Esmo and others rose, Cho succeeded in exiting part of the investment funds by transferring his shares to Lime. After he sold his shares, Esmo's stock price rapidly declined, and trading was suspended as illegal activities such as false disclosures were revealed.

Lime, which invested funds in Esmo and others, lost most of its investment, causing losses to fund subscribers. Cho, who pocketed the capital gains, went into hiding after the Lime scandal broke out.

The Criminal Division 6 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Kim Rak-hyun), investigating the Lime case, took custody of Cho and began an investigation. The prosecution plans to request an arrest warrant after questioning him.

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