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[Alpha Biz=(Chicago) Reporter Paul Lee] An arrest warrant for former CEO of Shinpoong Pharmaceutical Co., who was accused of raising slush funds worth 5.7 billion won through false transactions with customers and inflating unit prices, was rejected by the court.

Kim Jung-min, a senior judge in charge of warrants at the Seoul Central District Court, on the 27th rejected the request for former CEO Jang Won-joon's arrest warrant filed by the prosecution on charges of violating the Act on External Audit of Stock Companies, saying, "It is hard to say that there is a fear of destroying evidence."

Former CEO Jang Won-joon is suspected of colluding with Executive Director A of Shinpoong Pharmaceutical to create a slush fund worth 5.7 billion won by returning the difference after a fake transaction with Company B, a pharmaceutical raw material company, from April 2011 to March 2018. It is also suspected of falsely preparing and disclosing Shinpoong Pharmaceutical's financial statements.

Meanwhile, executive director A was first put on trial under arrest last month, and former Shinpoong Pharmaceutical Chairman Jang Yong-taek, who was involved in the allegations, died and was treated as having no right to indict.

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