'Kyobo Life Insurance Valuation Fraud Conspiracy' Affinity and Anjin Accounting First Trial

[Asia Economy Reporter Oh Hyung-gil] The legal battle over the 'Kyobo Life Insurance value appraisal collusion' allegations involving Shin Chang-jae, chairman of Kyobo Life Insurance, and the Affinity Consortium, which clashed over a put option, has begun.

According to industry sources on the 20th, the Criminal Division 22 of the Seoul Central District Court held the first trial in the afternoon for the certified public accountants from Anjin Accounting Corporation and executives of the Affinity Consortium, who are accused of violating the Certified Public Accountant Act in connection with the Kyobo Life Insurance put option dispute.

Affinity, a financial investor (FI) of Kyobo Life Insurance, and Anjin Accounting Corporation were indicted on charges of colluding to inflate the price during the valuation process of the put option for Kyobo Life Insurance.

Affinity, which holds a 24% stake in Kyobo Life Insurance, and Anjin, entrusted with the corporate valuation from Affinity, are accused of illicitly soliciting and colluding during the put option claim process to falsely report the fair value of Kyobo Life Insurance shares. There are suspicions that Anjin inflated the stock value to enable Affinity to gain benefits.

So far, six people have been indicted by the prosecution for violating the Certified Public Accountant Act in connection with the Kyobo Life Insurance put option dispute: three accountants from Anjin, two Affinity officials, and one accountant from Samduck Accounting Corporation. Including one Baring PE official whose prosecution was suspended due to unknown whereabouts, a total of seven people face charges.

On the 10th, the first trial was held for Samduck Accounting Corporation, which was indicted for falsely reporting the corporate valuation of Kyobo Life Insurance. Samduck was entrusted with the corporate valuation for the put option by another FI of Kyobo Life Insurance, Apalma Capital. The prosecution believes that Samduck cited and accepted the report prepared by Anjin Accounting Corporation without correcting even simple errors during this process.

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