Prosecutors Issue Arrest Warrants for Former and Current Ssangbangwool Group Chairmen on Embezzlement Charges

Current and Former Executives Abroad... Lee Jae-myung's 'Alleged Lawyer Fee Payment' Also Under Investigation
Prosecutors: "Executives Absent for Long Periods Can Be Seen as Essentially Fleeing"

[Asia Economy Reporter Heo Kyung-jun] The prosecution has officially begun procedures to secure the custody of former and current executives of Ssangbangwool Group who are staying overseas in connection with embezzlement charges and other allegations.

According to the legal community on the 16th, the Criminal Division 6 of Suwon District Prosecutors' Office (Chief Prosecutor Kim Young-nam) recently obtained arrest warrants for former Chairman A and current Chairman B of Ssangbangwool Group.

The investigation team received suspicious fund flow data of Ssangbangwool from the Financial Intelligence Unit (FIU) and has been examining the fund relationships among affiliates, including the process of selling convertible bonds (CB) worth 4.5 billion KRW issued by Ssangbangwool in 2020, while looking into embezzlement by the management.

The prosecution is currently considering requesting a red notice from Interpol based on the issued arrest warrants if the former and current chairmen staying overseas do not comply with summons. A red notice is one of the notices issued by Interpol and targets suspects of serious crimes for whom arrest warrants have been issued.

When a red notice is issued, the suspect’s personal information, criminal charges, fingerprints, DNA, and other data are shared with law enforcement authorities of Interpol member countries and registered at airports and seaports worldwide.

A prosecution official said, "When a person running a company is absent from the company for a long time, it can only be seen as an actual escape," adding, "We are currently identifying their whereabouts and will take necessary measures."

Additionally, the investigation team has formed a joint task force with the Public Investigation Division (Chief Prosecutor Jung Won-doo), which is currently investigating the ‘Attorney Fee Payment Suspicion Case’ involving Lee Jae-myung, a member of the Democratic Party of Korea, and is expanding the investigation to include the connection between Ssangbangwool’s improper fund flows and the fee payment suspicion case involving Lee.

There are allegations that large sums of attorney fees were paid on behalf of Lee’s defense lawyers with Ssangbangwool Group’s convertible bonds and other means during the 2018 public official election law violation case when Lee was serving as Governor of Gyeonggi Province. Both Lee and Ssangbangwool deny the allegations entirely.

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