Embezzlement of Company Funds Worth 10 Billion Won and Illegal Foreign Exchange Transactions... Three Executives Arrested and Indicted

Three individuals, including the corporate representative who illegally remitted foreign currency and embezzled corporate funds using a KOSDAQ-listed company, have been arrested and indicted.

On the 10th, the Anti-Corruption Investigation Division of Daegu District Prosecutors' Office (Chief Prosecutor Il-gyu Lee) indicted three executives, including B (54), CEO of KOSDAQ-listed company A, on charges of violating the Act on Reporting and Using Specified Financial Transaction Information.

During the investigation of a large-scale illegal foreign exchange remittance case last year, the prosecution confirmed that B and others participated in illegal foreign exchange transactions worth approximately 180 billion KRW by exploiting the so-called 'Kimchi Premium,' where virtual assets are traded at higher prices in South Korea than overseas.

B and others are accused of embezzling 15.5 billion KRW by using company funds for loan repayments and constructing B's personal resort over about two years starting in 2019, after acquiring company A through a no-capital M&A, and participating in illegal foreign exchange transactions worth about 180 billion KRW.

Company A, which was a profitable company with a surplus of about 3 billion KRW immediately after B and others took control of management rights, fell into a deficit of 38.5 billion KRW within three years.

Since August last year, the Daegu District Prosecutors' Office has investigated a large-scale illegal foreign currency remittance case and confirmed illegal foreign exchange transactions amounting to about 9 trillion KRW to date. As a result, 12 people have been arrested and indicted, and a total of 17 individuals have been brought to trial. Extradition procedures, including criminal surrender, are underway for 10 overseas accomplices.

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