Prosecutors Indict Company CEO Without Detention for Embezzling 500 Million Won in Government Subsidies

5 Hundred Million Won Diverted to Operating Expenses Out of 1.9 Billion Won

Supplementary Investigation Overturns Police's "No Charges" Decision

"Zero Tolerance for Misuse of Taxpayer Money"

The CEO of a company who misappropriated hundreds of millions of won in government subsidies for company operating expenses has been indicted following a supplementary investigation by prosecutors. Although the police initially concluded that there was no evidence of wrongdoing, prosecutors overturned that decision after uncovering new evidence through further investigation.

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Jin-Hyung Kang

On May 7, the Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (headed by Chief Prosecutor Jin-Yong Kim) announced that the company's CEO, identified as Mr. A, had been indicted without detention on charges of embezzlement in violation of the Act on the Aggravated Punishment of Specific Economic Crimes.

According to the prosecution, between December 2015 and June 2017, Mr. A is accused of embezzling approximately 500 million won out of 1.9 billion won in government subsidies received for the "Advanced Convergence Content Technology Development Project" and using the funds for company operating expenses and other purposes.

Initially, the police were unable to prove the accusations and forwarded the case to the prosecution with an opinion of "no charges." However, after taking over the case, prosecutors summoned multiple witnesses, including company employees, and conducted a thorough supplementary investigation by analyzing messages exchanged among staff and transaction records. Through this process, they were able to establish evidence of Mr. A's embezzlement.

The prosecution stated, "We will continue to do our utmost to investigate subsidy-related corruption cases to ensure that taxpayers' money is not misused."

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