Executives and Corporation of Shinpung Pharmaceutical Suspected of 'Slush Fund Creation'... Referred to Prosecution
Embezzlement Charges under the Special Act
Charges of Violations of Laws on Corporations and External Audits
[Asia Economy Reporter Oh Gyumin] The police have forwarded the Shinpoong Pharmaceutical 'slush fund creation' case to the prosecution with a recommendation for indictment.
The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced on the 25th that on the 23rd, they sent Shinpoong Pharmaceutical executive Mr. Noh to the prosecution on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. According to the police, the amount embezzled by Mr. Noh is approximately 5 billion KRW.
In addition, the Shinpoong Pharmaceutical corporate entity was also sent to the prosecution on charges of violating laws related to external audits.
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The police suspect that Shinpoong Pharmaceutical created a slush fund of about 25 billion KRW over roughly 10 years from the mid-2000s by conducting false transactions with pharmaceutical raw material companies and inflating raw material prices, and launched an investigation. Accordingly, on November 24 last year, the police conducted a search and seizure of the finance team at Shinpoong Pharmaceutical headquarters in Gangnam-gu, Seoul, and the factory in Ansan, Gyeonggi Province.
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