[Alpha Biz= Paul Lee] Prosecutors have requested an arrest warrant for a former executive of LS Securities on charges of accepting millions of won in bribes from a construction company.
According to the legal industry on Tuesday, the Seoul Central District Prosecutors' Office, Anti-Corruption Investigation Division 3 (Chief Prosecutor Lee Seung-hak), has requested an arrest warrant for A, a former division head at LS Securities, on charges of accepting bribes under the Specific Economic Crimes Aggravated Punishment Act and illegal lending.
The warrant review for A took place at 10:30 a.m. on Tuesday at the Seoul Central District Court.
A is accused of accepting millions of won in bribes from construction companies in exchange for providing loans from 2018 to 2022.
Earlier, prosecutors raided LS Securities in October of last year on suspicion that company executives had used insider information to gain unfair profits. During the investigation, additional criminal charges against A were uncovered.
In the meantime, prosecutors have indicted 14 individuals, including former LS Securities executives, who are accused of using undisclosed information obtained in the course of their duties to assist or facilitate the acquisition of hundreds of billions of won in real estate project financing (PF) loans. Among them are LS Securities CEO Kim Won-kyu and Vice President Bong Won-seok.
CEO Kim and Vice President Bong are accused of accepting expensive artwork from a former subordinate, Mr. Kim (44), in exchange for favors related to their duties.
The two are also alleged to have facilitated the misappropriation of LS Securities funds, approving a loan of 79.5 billion won to a paper company during a process in which Mr. Kim allegedly withdrew 83 billion won from the PF loan.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
