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Prosecutors raid Shin Poong Pharm. over slush fund allegations

All News 11:20 September 15, 2022

SEOUL, Sept. 15 (Yonhap) -- Prosecutors on Thursday raided Shin Poong Pharm. Co. on allegations that the pharmaceutical company has created a huge amount of slush funds by manipulating its transaction records.

The Seoul Central District Prosecutors Office sent prosecutors and investigators to the Shin Poong headquarters in southern Seoul, and the offices and residences of related suspects to look through their account books and other documents.

Shin Poong is suspected of having created 5.7 billion won (US$4.1 million) in slush funds by fabricating or inflating deals with pharmaceutical raw materials suppliers over the past decade.

The volume of the company's alleged slush funds was previously estimated to reach 25 billion won, but an initial investigation by the Seoul Metropolitan Police Agency reduced the amount to 5.7 billion won. The police also transferred a company executive to the prosecution in May with an opinion of indictment on embezzlement charges.

The latest raid by prosecutors has triggered speculation that the prosecution may have found more clues to the suspicions surrounding the company's alleged slush funds.


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