Prosecutors Summon Shinpoong Pharmaceutical CEO Yu Jeman for Investigation Over 5.7 Billion Won Slush Fund Allegation
Seoul Central District Prosecutors' Office, Seocho-dong, Seoul.
Photo by Choi Seok-jin
[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The prosecution, investigating allegations of slush fund creation amounting to 5 billion KRW at Shinpung Pharmaceutical, is summoning CEO Yu Jae-man for questioning on the 26th.
The Criminal Division 7 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Sung Sang-wook) is currently summoning CEO Yu and Executive Director A of the same company as a witness and suspect, respectively. Mr. A was previously referred to the prosecution by the police with a recommendation for indictment on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes.
Shinpung Pharmaceutical is suspected of creating a slush fund worth approximately 5.7 billion KRW over the past decade by engaging in false transactions with pharmaceutical raw material suppliers and inflating raw material prices.
The police, who initially investigated the case, referred Mr. A to the prosecution on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, and the company as a legal entity on charges of violating the External Audit Act. The police also investigated former CEO Jang Won-jun, son of the late founder Jang Yong-taek, but decided not to indict him.
After taking over the case, the prosecution requested the police to conduct supplementary investigations regarding the involvement of former CEO Jang, but the police ultimately failed to clarify this and notified the prosecution in August of the same investigation results as before.
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Since then, the prosecution has been conducting direct investigations, including summoning related individuals for questioning and conducting raids on about ten locations, including Shinpung Pharmaceutical’s headquarters, related offices, and residences last month.
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