"Warrant Issued for Arrest of Joheunsaramdeul CEO on Embezzlement and Breach of Trust Charges Ahead of Detention Hearing"

[Asia Economy Reporter Kim Daehyun] A detention warrant has been issued for Lee Jonghyun, CEO of the fashion underwear specialist company 'Joeun Saramdeul,' who is accused of embezzlement and breach of trust.

According to the legal community on the 17th, Park Wonkyu, the judge in charge of warrants at the Seoul Western District Court, issued the detention warrant for CEO Lee, citing "risk of flight." CEO Lee did not attend the pre-trial detention hearing on the 8th and is currently wanted.

Earlier, in May last year, the Korean Confederation of Trade Unions' National Chemical, Textile, and Food Industry Labor Union filed a complaint with the prosecution, alleging that CEO Lee abused his authority by personally borrowing 3.65 billion won and causing the company to enter into contracts as a joint guarantor or debtor, resulting in massive debt.

Additionally, Choi, an auditor of Joeun Saramdeul, and the representative of the company's minority shareholders' coalition also filed a complaint in the same month against former CEO Lee for breach of trust under the Specific Economic Crimes Act. They claimed that in November 2020, CEO Lee entered into a contract to transfer his company shares to ASP Company and others for 3.1 billion won, using Joeun Saramdeul as a joint guarantor, thereby burdening the company with debt amounting to approximately 6 billion won (with an annual interest rate of 24%).

Shares of Joeun Saramdeul have been suspended from trading since early last year after the audit report received a disclaimer of opinion.

CEO Lee was appointed as CEO of Joeun Saramdeul in March 2019, stepped down from the CEO position in April last year to become an inside director, and was reinstated as CEO through a board meeting in early January this year.

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