Both Sides Appeal First-Instance Ruling on Jongpil Lee in 'Lime Scandal' 30 Billion Won Embezzlement Case

10-Year Prison Sentence in First Trial,
Appeals Filed by All Parties Within a Week

Both the prosecution and Jongpil Lee, former Vice President of Lime Asset Management, have appealed the first-instance court’s decision, which sentenced him to a heavy prison term for allegedly embezzling 30 billion won of fund assets from Lime Asset Management.

Jongpil Lee, former Vice President of Lime Asset Management, is answering questions at a press conference related to Lime Asset Management fund redemption postponement held in 2019 in Yeongdeungpo-gu, Seoul. Photo by Yonhap News

According to legal sources on September 7, the Seoul Southern District Prosecutors’ Office filed an appeal against the 10-year prison sentence handed down to Lee by the first-instance court for charges including fraud, breach of trust, and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. On September 4, Lee, along with Chae (age 47) and Park (age 51), both former executives from the real estate development company Metropolitan, as well as Kim (age 49), a former executive at Lime Asset Management, also submitted their separate notices of appeal.

On August 28, the 15th Criminal Division of the Seoul Southern District Court (Chief Judge No Yookyung) sentenced Lee to 10 years in prison. Chae, who was indicted and detained together with Lee, received seven years in prison and was ordered to forfeit approximately 3.2 billion won. Park was sentenced to six years in prison with a forfeiture of about 3.7 billion won. Kim, who was indicted without detention, was sentenced to three years in prison, suspended for five years.

Lee and the others were brought to trial on charges of submitting false investment review documents to make it appear they were investing in a legitimate business, instead of secretly acquiring the Isla Casino in Cebu, Philippines for personal gain with Lime fund assets in 2018. Based on these false documents, they allegedly received 30 billion won.

The first-instance court stated, “It appears the casino was acquired based on the personal interests of Kim Younghong, former Metropolitan chairman, and there is no evidence of operation by Metropolitan as a company. It is recognized that, according to the division of roles, the defendants created an investment review report that distorted the casino’s revenue and operating profit, and failed to properly inform the committee of the illegal gambling operation, thereby deceiving the committee.”

However, the court acquitted Chae and Park of the charge of defrauding 21 billion won from the Lime fund in order to acquire the Provence corporation in Paju, Gyeonggi Province. Lee was also acquitted of suborning perjury.

Lee is currently serving a 20-year prison sentence due to a separate conviction related to the Lime scandal.

This content was produced with the assistance of AI translation services.