Former Dongseong Pharmaceutical Executives Referred to Prosecution Without Detention Over Alleged Embezzlement of Around 30 Billion Won

Former executives and employees of Dongseong Pharmaceutical, a KOSPI-listed company who had been under police investigation for embezzling approximately 30 billion won in company funds, have been referred to the prosecution.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency's Metropolitan Investigation Unit announced today (October 30) that it has forwarded five individuals, including a former chairman surnamed Lee and a former CEO surnamed Na of Dongseong Pharmaceutical, to the Seoul Southern District Prosecutors' Office without detention on charges of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) and violating the Capital Markets Act regarding prohibitions on market manipulation.

Lee is accused of embezzling approximately 25 billion won in company funds from 2022 to the end of 2024 to cover losses incurred from personal futures and options trading.

He is also accused of manipulating stock prices to prevent them from falling below a certain level after depositing company shares as collateral for futures and options trading.

Former CEO Na was referred without detention on charges of embezzling approximately 6 billion won in company funds and participating in market manipulation despite being aware of the crimes.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.