Suspicion of 'Embezzlement Reduction and Concealment', Former Ewha Electric Chairman Kim Young-jun Arrested

Three Former Executives' Warrants Dismissed

Former Ewha Electric chairman Kim Young-jun, who is under prosecution investigation for embezzlement and breach of trust charges and accused of downplaying and concealing these facts, was detained on the 26th.

Seoul Central District Court, Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Seoul Central District Court Chief Judge Kim Mi-kyung, in charge of warrants, conducted a pre-arrest interrogation (warrant review) of former chairman Kim on the same day and issued an arrest warrant requested by the prosecution, stating, "There is a risk of evidence destruction and flight."

However, arrest warrants for three former Ewha Electric executives, who were also charged with the same offenses, were dismissed. Judge Kim stated the reasons for dismissal: "A substantial amount of evidence of the crime has been secured, and it is unlikely that the suspect will influence related witnesses' testimonies. Considering the suspect's stable residence and family relations, there is no concern of flight. Taking into account the involvement and extent of the crime, it is difficult to recognize the necessity of detention."

Former chairman Kim and others are accused of submitting false disclosures and announcements that downplayed and concealed the amount embezzled during the prosecution investigation for embezzlement and breach of trust last year, and trading convertible bonds with warrants (BW) while hiding such information. The prosecution is known to suspect that their actions constitute insider trading and fraudulent unfair transactions.

The prosecution seized Ewha Electric and other Ewha Group (E-Group) affiliates in March last year, targeting embezzlement charges against former chairman Kim and others. Kim was detained on May 11 last year on charges of creating slush funds worth hundreds of billions of won and tax evasion, and was indicted on May 30 of the same year. He was released on bail in December last year and is currently standing trial without detention.

Ewha Electric was designated as a non-compliant disclosure corporation after lowering the amount of alleged embezzlement in response to the Korea Exchange's disclosure request regarding rumors of embezzlement and breach of trust by former and current executives. The prosecution is reported to believe that former chairman Kim and others deliberately concealed the fact that grounds for a substantial review of listing eligibility had occurred and traded accordingly.

When it became known that the prosecution requested arrest warrants for former chairman Kim and others on the 19th, Ewha Electric explained through its website, "The executives mentioned in the reports are former executives who resigned last year and are unrelated to the current management, belonging to the former E-Group management."

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