Two Former Executives of Hyanggun Sangjo Who Helped Kim Bong-hyun in the 'Rhyme Scandal' Embezzling Hundreds of Billions Detained

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[Asia Economy Reporter Yoo Byung-don] Former executives of the Veterans Association (Hyanggun) funeral service, suspected of being involved in the 'Lime Asset Management Scandal' which caused a suspension of redemptions worth 1.6 trillion won, have been arrested.

On the 14th, Judge Seong Bo-gi, in charge of warrants at the Seoul Southern District Court, announced that arrest warrants requested by the prosecution were issued for Jang, former vice chairman of the Hyanggun funeral service, and Park, former vice president, citing "concerns over evidence destruction and flight risk."

They are accused of assisting Kim Bong-hyun (46, detained), chairman of Star Mobility, who was identified as the mastermind behind the Lime scandal, in acquiring the Hyanggun funeral service through a "no-capital merger and acquisition" (M&A) method, and embezzling approximately 37.8 billion won of funeral service assets together with Chairman Kim (charges include embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes).

They are also accused of hiding the embezzlement and reselling the Hyanggun funeral service to Company A, fraudulently receiving 25 billion won as a deposit.

The Hyanggun funeral service was sold earlier this year to a consortium led by Chairman Kim Bong-hyun. The Hyanggun Normalization Promotion Committee claims that Chairman Kim and Hyanggun Chairman Kim Jin-ho colluded to hastily process this sale and has filed a complaint against Kim Jin-ho with the prosecution.

Chairman Kim Bong-hyun was on the run for about five months before being arrested by police in Seongbuk-gu, Seoul, on April 23 of this year. In addition to charges of embezzling Hyanggun assets, he is also accused of embezzling 51.7 billion won from Star Mobility, a listed company he owns.

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