Kim Won-kyu, CEO of LS Securities (formerly Ebest Investment & Securities), has been indicted for allegedly providing business favors in exchange for purchasing high-value artwork at a price lower than market value from an executive and aiding in the misappropriation of real estate project financing (PF) loans.
On the 7th, the Seoul Central District Prosecutors’ Office Anti-Corruption Investigation Division 3 (Chief Prosecutor Lee Seung-hak) announced that Kim had been indicted without detention on charges of receiving bribes under the Act on the Aggravated Punishment of Specific Economic Crimes and aiding and abetting breach of duty.
According to prosecutors, in June 2021, Kim allegedly purchased a painting worth approximately 46 million KRW for 30 million KRW from former Ebest Investment & Securities executive Kim. In return, he provided work-related favors to the former executive.
The former executive is accused of operating a private development company using undisclosed project financing information from Ebest Investment & Securities and misappropriating 83 billion KRW in PF loans. Prosecutors believe that CEO Kim facilitated these illegal activities by neglecting to prevent them.
Additionally, Bong Won-seok, former vice president of Ebest Investment & Securities, has also been indicted without detention on charges of receiving undue benefits. Bong allegedly accepted a painting worth 11 million KRW from the former executive in September 2023.
Prosecutors further determined that employees of Hyundai Engineering & Construction, which was involved as a contractor, were also complicit in the PF loan misappropriation. Two Hyundai employees, a director and a team leader, have been indicted for aiding the misappropriation. They allegedly approved the disbursement of 83 billion KRW to the former executive under the guise of repaying an existing bridge loan.
The prosecution stated, “Crimes related to real estate project financing pose a serious risk to the stability of the financial system and can lead to large-scale financial crises. We will ensure thorough prosecution and continue to investigate structural corruption within financial institutions.”
In response, LS Securities refuted the allegations, stating, “CEO Kim did not unlawfully receive high-value artwork from a specific business executive, nor did he knowingly facilitate the misappropriation of PF loans.” The company added, “We plan to actively clarify our position during the trial process regarding the prosecution’s claims.”
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Kim Won-kyu, LS Securities CEO, Indicted for Preferential Art Purchase and PF Loan Aiding
Kim Won-kyu, CEO of LS Securities (formerly Ebest Investment & Securities), has been indicted for allegedly providing business favors in exchange for purchasin
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