KB금융지주. (사진=연합뉴스)

 

[Alpha Biz= Reporter Kim Sangjin] KB Securities has been acquitted in the appeal trial regarding suspicions of selling Lime Asset Management (Lime) funds to investors despite knowing their insolvency. However, they were fined 500 million won for allegations of evading fund sales commissions, similar to the initial ruling.

On the 23rd, the 9th Criminal Division of the Seoul High Court imposed a fine of 500 million won on KB Securities, the corporate entity indicted for violations of the Capital Market and Financial Investment Business Act, consistent with the initial ruling. Additionally, former and current employees who were also brought to trial received suspended prison sentences.

Kim, the former team leader of Delta One Solution at KB Securities, who was accused of unlawfully acquiring sales commissions using work-related information, received a two-year prison sentence and a suspended sentence of 100 million won.

Lee Jong-pil, the former vice president of Lime, who was sentenced to 20 years in prison as a key figure in the Lime incident, was also acquitted in the appeal trial on suspicions of involvement in the sale of defective products.

KB Securities acted as the sales agent and provider of Total Return Swaps (TRS) for Lime funds. TRS is a form of lending where the investment itself is used as collateral to borrow additional funds.

For example, if Lime invested 100 billion won in convertible bonds (CB) of a specific company, KB Securities would lend Lime 100 billion won using it as collateral, allowing Lime to double its investment.

The prosecution suspected KB Securities of being involved in the incomplete sale and insolvency of Lime domestic funds. Kim, the former team leader, was accused of selling defective Lime funds and unlawfully acquiring sales commissions during this process.

 

 

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