Southern District Prosecutors' Office: "Passage of Geomsu Wanbak... Financial Crime Damage Affects Individual Investors"

by Oh Kuemin

Published 20 Apr.2022 17:20(KST)

Updated 20 Apr.2022 19:32(KST)

Investigation into Corporate Raider Embezzlement and Breach of Trust Case 'Virtually Halted'

[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] The Seoul Southern District Prosecutors' Office has expressed concerns regarding the 'Geomsu Wanbak (Complete Removal of Prosecutorial Investigation Rights)'. This is interpreted as a full-scale response following the Democratic Party of Korea's unwavering determination to push through the Geomsu Wanbak bill.

On the 20th, Park Seonghun, Head of the Financial and Securities Crime Investigation Cooperation Division, Moon Hyuncheol, Head of the Financial Investigation Division 1, Kim Rakhyeon, Head of the Financial Investigation Division 2, and Kim Gihun, Head Prosecutor of the Criminal Division 6 at the Seoul Southern District Prosecutors' Office, clearly stated their opposition to the full-scale discussion of Geomsu Wanbak through written materials. The Geomsu Wanbak bill aims to transfer prosecutorial investigation rights over six major crimes to the police.

The Southern District Prosecutors' Office, which focuses on financial crimes, emphasized, "Financial and securities crimes are evolving day by day," adding, "Investigations in this area require a complex understanding of capital market-related laws and legal principles, as well as securities and financial markets, thus necessitating a swift and precise approach from investigation to prosecution maintenance."

They pointed out, "If the Geomsu Wanbak bill passes as is, the cooperation system between prosecutors and related agencies will collapse," and "Investigations into large-scale fund damage cases and embezzlement and breach of trust cases by organized corporate raiders will inevitably be practically halted." They added, "The damage will affect not only individual investors but also the overall Korean economy."

They also stated the need to further strengthen the response capability to capital market crimes. They said, "We will do our utmost in investigating, prosecuting, and maintaining prosecutions for financial and securities crimes to ensure there is no negligence in protecting the safety and property of the people," and "We ask everyone to deeply consider what reforms truly serve the people."