Senior prosecutor, Nexon founder indicted over stock purchase scandal

SEOUL, July 29 (Yonhap) — State investigators on Friday indicted a high ranking prosecutor and the founder of South Korea’s leading online game maker Nexon Co. for their suspicious stock transactions and bribery allegations.

Jin Kyung-joon is suspected of receiving over 900 million won (US$800,600) worth of bribes from Kim Jung-ju, the chairman of Nexon’s holding firm NXC Corp., from 2005 to 2014, said an ad hoc probe team, wrapping up its three-week investigation.

The case involving Jin came to light early this year as the superintendent-level prosecutor reported a whopping increase in his personal wealth in 2015. All ranking government officials and lawmakers are required to disclose changes in their personal wealth annually.

Kim allegedly gave 425 million won of Nexon’s assets to Jin in 2005 for him to buy 10,000 shares of the company, which ultimately helped the senior prosecutor amass some billions of won in profit through stock transactions by 2015. He later gave another 425 million won to Jin so that he could pay back the money borrowed from the company originally.

Jin is also suspected of receiving over 50 million won from Kim between 2005 and 2014 for his family’s travel expenses and pocketing another 30 million won to take over a car leased by Kim’s company.

A former vice president of Korean Air Lines Co., South Korea’s largest carrier, was also indicted on charges of making contracts with the company of Jin’s brother-in-law, in return for business favors.

The inspection department under the Supreme Prosecutors’ Office said its committee has unanimously decided to dismiss the 49-year-old prosecutor. The Ministry of Justice is expected to make a final decision after holding a disciplinary committee.

Earlier this month, the country’s top prosecutor Kim Soo-nam designated Lee Keum-ro, chief of the Incheon District Prosecutors’ Office, to head the independent team and thoroughly investigate the case.

The special team can investigate without supervision, having only to report its results to the prosecutor general.

Prosecutors said the Seoul Central District Prosecutors’ Office will continue investigating other corruption allegations raised against Kim.

Following the announcement, Kim released a written apology and said he will resign from his position as a board member of Nexon Co.

This undated Yonhap image shows prosecutor Jin Kyung-joon (L) and Kim Jung-joo, the founder of South Korea’s leading online game maker Nexon Co., who were indicted on July 29, 2016, over their suspicious stock transactions and bribery allegations.