Police Decide Not to Indict Daehan Textile Executives on Embezzlement Suspicion Due to Lack of Evidence

Suspected Breach of Trust in Business
'Insufficient Evidence'

Daehan Textile CI

[Asia Economy Reporter Oh Gyumin] The police have decided not to prosecute the embezzlement allegations against Daehan Textile, which involved excessive investment in an unlisted Hong Kong corporation linked to the brothers of Unification Minister Kwon Young-se.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency decided on the 11th not to prosecute Chairman Seol Beom of Daehan Textile and CEO Kim In-ho, who were accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement in the course of business) and the Capital Markets Act (prohibition of insider trading), citing insufficient evidence.

A representative A of the small shareholders' coalition and others had filed a complaint against Chairman Seol and others for violating the Capital Markets Act, but the police dismissed the case due to lack of evidence at the end of last year. Subsequently, in April, A and others resubmitted the complaint, adding allegations that Daehan Textile had financially supported Minister Kwon's brothers.

The police summoned Chairman Seol and CEO Kim last month for questioning as suspects but concluded there was no intent to embezzle. The funds were used in the course of other business activities, and the failure to recover the money was due to a shortage of funds.

Furthermore, the police found no evidence during the investigation to establish any connection and did not indict Minister Kwon's family. It is known that Minister Kwon and Chairman Seol were close friends since high school.

Daehan Textile invested several hundred million won in the unlisted Hong Kong corporation 'TNPI HK' in 2012. The corporation was established in February 2012 and operated by Minister Kwon's elder brother and younger brother. It was dissolved and registered last February following the collapse of the Coffee Bean franchise's China business.

The shareholders raised these suspicions, stating that despite Daehan Textile's investment failure, no measures were taken to recover the losses.

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