How Much Will the Police's Pre-Indictment Seizure and Forfeiture Preservation Request Be Granted in the 'Ostem 221.5 Billion Embezzlement' Case?

Uncertainty Remains Over Full Approval of Lee Family's 33 Billion Won Assets Case

Lee Mo, who is accused of embezzling 221.5 billion won of company funds from Osstem Implant, is being transferred to the prosecution from the Gangseo Police Station in Seoul on the 14th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Yoo Byung-don] How much of the 221.5 billion KRW embezzled by Osstem Implant employee Mr. Lee (45, in custody) can be recovered and from where?

The Seoul Gangseo Police Department, investigating the case, applied on the 12th for pre-indictment seizure and confiscation of at least 33 billion KRW worth of assets related to Mr. Lee, including real estate, stocks, and deposits. The target assets include stocks worth 25 billion KRW remaining in Mr. Lee’s securities trading account, real estate valued at approximately 8 billion KRW, and some deposits. The prosecution reviewed the application and submitted it to the court, which is currently considering whether to approve it.

Pre-indictment seizure is a measure to prevent the suspect from disposing of illegally acquired assets such as real estate before the court’s verdict on the charges. Pre-indictment confiscation is a measure to prevent the suspect from disposing of assets if they have used profits obtained through the crime, allowing authorities to collect an equivalent amount.

If the court issues an order for seizure and confiscation of the relevant assets, the criminal proceeds including real estate, stocks, and deposits owned by Mr. Lee will be frozen, making it easier to recover the damages. Among these, pre-indictment seizure is likely to be approved as it concerns profits gained from Mr. Lee’s embezzlement crime.

However, buildings located in Paju, Gyeonggi Province, reportedly gifted by Mr. Lee to his wife and younger brother, have been owned by him for 7 to 8 years, making the possibility of seizure uncertain. This is why the police also applied for confiscation. If the confiscation application is rejected, additional unrecoverable amounts may arise beyond the 76.1 billion KRW loss Mr. Lee incurred from stock investments. Since some real estate transactions were conducted under borrowed names and some funds were used to repay loans, there is also a possibility of civil litigation.

There is also a risk of additional losses on the 25.2 billion KRW frozen in the stock account. Since stocks equivalent to that amount have been frozen, profits or losses may occur depending on market conditions. Given that the scale of damage recovery will inevitably affect Osstem Implant’s stock price and other factors, shareholders’ attention is naturally focused on this matter.

Meanwhile, according to the National Police Agency, the police seized and confiscated criminal proceeds worth approximately 507.3 billion KRW from January to June last year. This is a 21.3-fold increase compared to the same period the previous year (22.8 billion KRW).

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