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[Alpha Biz=(Chicago) Reporter Paul Lee] As Ehwa Group Chairman Kim Young-joon was arrested on charges of embezzlement and breach of trust, its affiliates Ehwa Technologies Information, E Investment&Development and ETRON are on the verge of being delisted. Meritz Securities, which invested in Ehwa Technologies Information with warrant bonds (BW) in advance, has made a profit by selling all of its shares.
The Korea Exchange's Securities and KOSDAQ Market Headquarters announced on May 31 that there was a reason for the listing eligibility review of EID, Ewha Electro-Mechanics, and Etron. They surged due to expectations of entering the secondary battery business. Ewha Electro-Mechanics was also designated as an investment warning item.
The amount of embezzlement and breach of trust is Ehwa Technologies Information 4249 million won, ETRON 31137 million won, and E Investment&Development 41648 million won. They have been suspended since May 12.
Kim and Kim Sung-kyu are suspected of hiding 37.3 billion won to avoid paying taxes for about 10 years since 2012. He is also suspected of raising 11.4 billion won in slush funds by raising family members to affiliates as false advisers and making 7.4 billion won in unfair profits by selling them after raising stock prices through false disclosures.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
