'False Disclosure of Convertible Bonds' Arrest Warrants for Former and Current Ssangbangwool Executives Denied

[Asia Economy Reporter Kim Hyung-min] The arrest warrants for former and current executives of Ssangbangwool, who are accused of making false disclosures related to the trading of convertible bonds issued by Ssangbangwool in 2018-2019, have been dismissed.

On the morning of the 21st, Judge Park Jung-ho, in charge of warrants at Suwon District Court, dismissed the arrest warrants for former Ssangbangwool Chief Financial Officer (CFO) Mr. A and current Finance Manager Mr. B, who are charged with violations of the Capital Markets Act (fraudulent unfair trading) and other offenses. Judge Park stated, "There is insufficient evidence to justify detention or concerns about flight or evidence destruction."

Earlier, the Criminal Division 6 of Suwon District Prosecutors' Office (Chief Prosecutor Kim Young-nam) requested pre-arrest warrants for Mr. A and others on charges of making false disclosures during the trading of convertible bonds (CB) worth 10 billion KRW each in 2018 and 2019, under the direction of former Ssangbangwool Chairman Kim Sung-tae.

The convertible bonds issued by Ssangbangwool in 2018 were reportedly all purchased by an investment company called Chakhanin Invest, which is known to be owned by former Chairman Kim. The 2019 convertible bonds were also entirely purchased by investment companies registered under the names of former Chairman Kim's relatives or close associates, and later, Vivian, a Ssangbangwool affiliate, repurchased all of them.

The prosecution viewed that the disclosure documents did not state that the companies acquiring the convertible bonds were paper companies within the group. They suspect that Ssangbangwool secured insufficient company funds through this transaction and engaged in slush fund creation and unfair transactions among affiliates.

Mr. A is also accused of embezzling 3 billion KRW of company funds into a paper company account to use as funds for purchasing convertible bonds of Nanos, a Ssangbangwool affiliate. Mr. B faces charges of breach of trust involving approximately 450 billion KRW by arbitrarily reducing a significant portion of the partnership shares of Zeus No.1 Investment Association, which holds rights related to Nanos convertible bonds, and changing them to former Chairman Kim's shares. It is reported that the arrest warrant requests named former Chairman Kim and Mr. Kim, the head of Ssangbangwool Group's Finance Headquarters, known as his "treasurer," as accomplices.

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