The prosecution announced on the 8th that it has charged seven corporate raiders who allegedly embezzled 52 billion won from MEDICOX after acquiring the KOSDAQ-listed company with no capital. The prosecution stated that it would continue the investigation and place two suspects who fled on a wanted list.
On the same day, the Anti-Corruption Investigation Unit 3 of the Seoul Central District Prosecutors' Office (Director General Lee Seung-hak) announced that it has detained and charged Vice President Park, a person surnamed Park of MEDICOX, along with Vice President Lee, a person surnamed Lee, on charges of breach of trust under the Act on the Punishment of Specific Economic Crimes, violations of the Capital Markets Act, and breach of trust with receipt of bribes. Vice President Park also holds a position as vice president of another company, J&K Industry (formerly AIBIT). J&K Industry was also listed on KOSDAQ but was delisted in October 2021.
The prosecution has charged five other executives from MEDICOX and J&K Industry with embezzlement and breach of trust without detention. Two individuals, surnamed Park, who serve as co-chairs of MEDICOX and J&K Industry, fled during the investigation, leading the prosecution to suspend charges against them.
They are suspected of purchasing unlisted stocks worth tens of billions of won owned by one of the group members using corporate funds from MEDICOX between 2019 and 2021. They also allegedly received tens of billions of won in return after purchasing convertible bonds from another company, which they claimed was unnecessary to buy with company funds.
These individuals are also suspected of embezzling corporate funds under the guise of lending payments. Furthermore, it has been revealed that they embezzled hundreds of millions of won by falsely registering family and acquaintances as employees of the company to obtain corporate credit cards and other benefits.
MEDICOX traces its origins back to Siotek, established in 1998. Siotek went public on KOSDAQ in 2001 and changed its name several times before becoming Central Ocean in 2010 and rebranding to MEDICOX in 2020. During this time, the largest shareholder has changed multiple times.