Prosecutors Conduct Search and Seizure at Shinpoong Pharmaceutical Headquarters for Alleged 5.7 Billion Won Slush Fund Creation

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] On the 15th, the prosecution conducted a search and seizure at the headquarters of Shinpung Pharmaceutical, which is suspected of creating a large amount of slush funds by manipulating transaction records with suppliers.

The Criminal Division 7 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Sung Sang-wook) sent prosecutors and investigators to Shinpung Pharmaceutical's headquarters and the offices and residences of related parties this morning to secure related materials such as accounting books in connection with the suspicions of slush fund creation at Shinpung Pharmaceutical.

Shinpung Pharmaceutical is suspected of creating slush funds amounting to 5.7 billion KRW by falsely transacting with pharmaceutical raw material companies and inflating raw material prices over more than ten years since the mid-2000s.

At the time the suspicions surfaced, the scale of Shinpung Pharmaceutical's slush funds was known to be 25 billion KRW, but the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency, which initially investigated the case, estimated the slush fund scale at 5.7 billion KRW based on the evidence and statements obtained. However, the use of the slush funds was not confirmed.

Regarding this case, the police sent executive A of Shinpung Pharmaceutical to prosecution without detention in May on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, and also referred the company corporation to the prosecution on charges of violating the External Audit Act.

As the prosecution, which took over the case, has launched a forced investigation including a search and seizure at the headquarters again, it appears they are trying to find clues to the use of the slush funds that the police could not reveal.

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