Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Osstem embezzlement scandal taints 1st trading session of 2022
Osstem Implant headquarters building in Seoul / Courtesy of Osstem Implant
By Park Jae-hyuk
By Park Jae-hyuk
An Osstem Implant employee fled after allegedly embezzling 188 billion won ($157 million) from his company, causing an indefinite suspension of the dental implant maker's stock transactions on the tech-heavy Kosdaq market during the first trading session of 2022, Osstem's regulatory filing showed Monday.
According to sources familiar with the issue, the employee, identified only by his surname Lee, is the same person who became popular last October among the country's retail investors for a 143 billion won acquisition of a 7.62 percent stake in Kosdaq-listed Dongjin Semichem.
Seoul Gangseo Police are tracing his whereabouts.
“An individual employee in charge of fund management stole a significant amount of our company's money, so immediately after we discovered the embezzlement, we sued him and disclosed this issue in our regulatory filing,” Osstem's investor relations team leader said in a message to shareholders.
Osstem said the stolen money amounts to 91.81 percent of its equity ― the single largest-ever embezzlement case in the history of Korea's listed firms.
The company vowed to retrieve the money as quickly as possible, but minority shareholders expressed concerns about the possible delisting of Osstem. The Korea Exchange (KRX) is set to reexamine the dental implant maker's qualification for being a listed company.
Foreign investors are also feared to suffer significant losses from the latest embezzlement scandal, as they collectively hold a 45 percent stake in Osstem.
Industry sources said the KRX has started inspecting Dongjin Semichem as well, although the semiconductor material manufacturer's shares have not been suspended from trading. The bourse operator refused to comment on details about its investigation.
According to Dongjin Semichem's regulatory filing, Lee bought 3.91 million shares on Oct. 1 and sold a combined 3.36 million shares for 111.2 billion won between Nov. 18 and Dec. 20. His average selling price was 7 percent lower than the purchase price.