[
THE INVESTOR] South Korean prosecutors on July 12 raided Nexon’s headquarters and home of founder
Kim Jung-ju who is currently under fire for allegedly providing gifts to a senior prosecutor.
An ad hoc probe team investigating the case also searched the home of the prosecutor, Jin Kyung-joon, who is Kim’s college friend.
Jin is suspected of raking in illegal profit from Nexon shares.
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Kim Jung-ju |
Earlier this year, the senior prosecutor reported a significant increase in his personal wealth in 2015. All ranking government officials and lawmakers are required to disclose changes in their personal wealth annually.
The Nexon founder allegedly lent some 400 million won (US$348,000) to Jin in 2005 so he could buy 10,000 Nexon shares -- unlisted at the time -- for below the market price. Jin then sold the stocks at more than double the acquisition price to Silverstone Partners, a paper company belonging to the Nexon founder.
With the proceeds, the prosecutor went on to buy 80,000 Nexon Japan stocks, also unlisted at the time.
In 2005, Kim had sold Nexon’s Korean office to Nexon Japan, a company he had erected in 2002.
Later in 2011, the value of Nexon Japan stocks skyrocketed by more than 100-fold when it was listed in Japan.
By Kim Ji-hyun (
jemmie@heraldcorp.com)
