A second-generation founder, referred to as A, of INSANGA, a KOSDAQ-listed company known for products related to bamboo salt, was recently reported to have been arrested as a co-conspirator in a breach of trust case involving 18 billion won on the 29th. However, A's breach of trust charges are said to be unrelated to INSANGA, where A is currently serving as an executive director, but rather pertain to other corporations.
The Seoul Southern District Prosecutors' Office's Financial and Securities Crime Investigation Division has been investigating A's charges. The investigation involves A being a co-conspirator in the breach of trust case regarding C, the largest shareholder of B, a KOSDAQ-listed vehicle camera lens manufacturing corporation, with charges of around 18 billion won. The two allegedly purchased 18 billion won in equity from another corporation using funds from B, which reportedly had no economic value.
Earlier, C was arrested and indicted last November on charges of breach of trust and embezzlement. Currently, B's stock trading has been suspended.
Prosecutors have applied the Specific Economic Crime Aggravated Punishment Act for the violation (breach of trust) against A and filed for an arrest warrant. In response, Director General Park Chan-seok of the Seoul Southern District Court issued an arrest warrant for A on the 17th, citing concerns that evidence might be destroyed.
Prosecutors are reportedly planning to charge A after conducting additional investigation while A is in custody.