Employee of Gyeyang Electric Urgently Arrested for Embezzlement of 24.5 Billion Won...Request for Departure Ban Also Made (Comprehensive)

Emergency Arrest at 9:20 PM the Previous Day
'Risk of Escape'... Request for Withdrawal Ban

[Asia Economy Reporters Jang Sehee and Oh Gyumin] The police have urgently arrested Kim, an employee of Gyeyang Electric, on suspicion of embezzling 24.5 billion KRW of company funds and have begun investigating the suspect.

On the 17th, the Suseo Police Station in Seoul announced that they had urgently arrested Gyeyang Electric employee Kim at around 9:20 PM the previous day on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes and are currently investigating him. It was also confirmed that the police requested a travel ban on Kim due to concerns about flight risk.

A police official told Asia Economy in a phone interview, "A complaint was filed, and the case was converted to a suspect investigation. The investigation began today."

The amount embezzled identified so far is 24.5 billion KRW, and Kim reportedly stated that he used the funds for stocks, Bitcoin, gambling, and entertainment. Kim manipulated the books over six years starting from 2016, and the fact was revealed when he confessed under pressure during an external audit in 2021 when accounting data was requested.

The police plan to focus their investigation on the exact amount embezzled and whether there are any accomplices. Kim is known to have previously stated to the company that he squandered the money on stock investments, virtual currency, and gambling.

Considering that Gyeyang Electric filed a complaint based on the employee’s statement, there is a possibility that the embezzled amount could increase during the investigation process.

A Gyeyang Electric official explained, "Since the complaint was filed based on the employee’s story, additional embezzlement facts need to be clarified through an accurate investigation."

Gyeyang Electric filed a complaint the day before yesterday on the 15th, accusing finance team employee Kim of embezzling about 24.5 billion KRW, violating the Act on the Aggravated Punishment of Specific Economic Crimes. This amount corresponds to 12.7% of Gyeyang Electric’s equity capital of 192.6 billion KRW.

Meanwhile, the Korea Exchange’s KOSPI Market Division announced that the embezzlement allegation by the employee triggered a reason for a substantial review of Gyeyang Electric’s listing eligibility and suspended stock trading.

Gyeyang Electric issued an official statement under CEO Lim Younghwan’s name, stating, "We are concentrating all our efforts company-wide to recover the embezzled amount and to resume stock trading as soon as possible," and promised, "We will establish an internal control system and do our best."

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