Prosecutors Detain Key Personnel in Shinpoong Pharmaceutical Slush Fund Case

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution investigating the 'Shinpoong Pharmaceutical slush fund allegations' has confirmed that a former employee of a supplier company, who was identified as being responsible for the practical aspects of creating the slush fund, has been detained.

According to the legal community on the 28th, the Criminal Division 7 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Sung Sang-wook) is investigating former employee A of a pharmaceutical raw material supplier company, known to have been involved in the creation of Shinpoong Pharmaceutical's slush fund, on charges of extortion under the Act on the Aggravated Punishment of Specific Economic Crimes, and has detained him.

A is accused of demanding money by threatening B, former Executive Director, who was known to have overseen the creation of the slush fund at Shinpoong Pharmaceutical, by sending letters stating that he would submit evidence of the slush fund to investigative agencies and financial authorities. It has been investigated that he actually received cash amounting to 500 million won and tens of billions of won in valuables from Shinpoong Pharmaceutical. The prosecution has also requested an arrest warrant for a tax accountant who assisted A in receiving the valuables on charges of extortion. The pre-arrest interrogation of the tax accountant will be held this morning at the Seoul Central District Court.

Earlier, the police investigating the case judged the size of the slush fund created by Shinpoong Pharmaceutical to be about 5.7 billion won and sent former Executive Director B and others to prosecution without detention on charges of embezzlement. The prosecution, which received the case, is conducting additional investigations, believing that the actual size of the slush fund created is several hundred billion won, much larger than 5.7 billion won.

The prosecution is also investigating allegations that the slush fund created in this way was used for the succession work of the owner family. Accordingly, there is a prospect that summons investigations of the owner family, including former CEO Jang Won-jun, son of the late founder Jang Yong-taek, will soon take place.

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