[Alpha Biz= Paul Lee] Seoul, July 2 — South Korean prosecutors have demanded prison sentences for several former and current executives of LS Securities (formerly eBEST Investment & Securities), accusing them of misusing confidential insider information to embezzle hundreds of billions of won through real estate project financing (PF) schemes.



At a sentencing hearing held on July 1 at the Seoul Central District Court, prosecutors requested a 15-year prison term, a ₩5 billion (approx. $3.6 million) fine, and forfeiture of ₩66.98 billion for former LS Securities executive Kim. He is accused of embezzling approximately ₩60 billion out of ₩83 billion in PF loan funds and accepting illicit payments totaling ₩5.5 billion by leveraging information obtained during his duties.



Two other former and current employees — Yoo and Hong — also face significant charges. Prosecutors requested 8 years and 5 years in prison respectively, along with large fines and asset forfeitures, for their roles in the fraudulent scheme.



Kim allegedly exploited non-public information obtained during his time managing PF operations to benefit a real estate development company he secretly operated. He and his accomplices are accused of forging documents and improperly influencing the disbursement of PF loan funds, with total damages estimated to exceed ₩83 billion.



Additionally, LS Securities CEO Kim Won-kyu and former Vice President Bong were each charged with accepting high-value artwork in exchange for business favors and for failing to prevent the misuse of PF funds under their leadership. Prosecutors sought 3-year prison sentences and ₩50 million in fines for both executives. LS Securities, as a corporate entity, faces a ₩100 million fine.



The court's final ruling is pending.

 

 

 

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