This article was published on March 5, 2025, at 10:55 a.m. on the ChosunBiz RM Report site.
Kim Won-kyu, CEO of LS SECURITIES (formerly eBEST Investment & Securities), was indicted without detention on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes on the 7th of last month. He is accused of aiding the executive's embezzlement of about 83 billion won and of accepting bribes from that executive.
Recently, the Ministry of Justice submitted the indictment against CEO Kim to the National Assembly. A legal professional who read the indictment noted on the 5th, "The subject of bribery, the circumstances, and the method of the case are eye-catching." If an employee of a financial company accepts money or benefits related to their duties, they can be punished with up to five years in prison or up to ten years of disqualification.
According to the indictment, CEO Kim believed that "a moon jar brings good fortune to the house." He then learned that Executive A had a painting of a moon jar. In May 2021, CEO Kim reportedly told Executive A, "I want to have the painting of the moon jar." Subsequently, it was found that Executive A sent the painting to CEO Kim's house a month later. Prosecutors believe that circumstances made it difficult for Executive A to refuse CEO Kim's request, given his authority over business supervision and personnel evaluation.
However, the way CEO Kim came to own the painting of the moon jar is said to be unusual. The painting's market value is about 46 million won, but CEO Kim did not receive it for free. CEO Kim transferred 30 million won to Executive A as the price of the painting. While doing so, he sent a text message to Executive A stating that, "In case of an emergency, I will pay the purchase price that Executive A paid and receive the rest as a favor." This arrangement made it appear as though he was buying the painting at a 35% discount from its market value.
In response, the prosecution stated in the indictment that "CEO Kim accepted the painting at a low price and received money and other benefits in relation to his duties." This suggests that they tried to avoid legal scrutiny by disguising the transaction as a sale rather than a bribe. A lawyer, who is a former judge, said, "CEO Kim is expected to argue in court that he merely bought the painting at a favorable price from someone he knows, rather than accepting a bribe." Another lawyer remarked, "It's hard to view a 35% discount as a favorable transaction, and it could be seen as involving other purposes," adding, "If it were a normal transaction, there would be no reason to send such a message."
Executive A, who served as the head of the real estate finance division at LS SECURITIES, is facing charges for using undisclosed information obtained while involved in the Homeplus Daejeon Tanbang development project to lend 83 billion won in PF loans to a ghost company he created without collateral. Currently, the prosecution is focusing on the timeline from June 2021, when CEO Kim received the moon jar painting, to October of the same year, noting that Executive A's 83 billion won embezzlement occurred in succession during that period.
In response, LS SECURITIES stated, "CEO Kim did not improperly receive expensive paintings from specific project personnel related to his duties, nor was he aware of any diversion of PF loans from the relevant project SPC (special purpose company)."