Nexon founder summoned over bribery suspicions
Kim Jung-ju, founder of Nexon and chairman of its holding company NXC, answers reporters’ questions as he enters the Seoul Central District Prosecutors’ Office in southern Seoul, Wednesday, for questioning over his alleged involvement in senior prosecutor Jin Kyung-joon’s huge gains in trading Nexon shares. / Yonhap
Probe to focus on link between Kim and prosecutor
By Kim Bo-eun
Prosecutors on Wednesday summoned gaming company Nexon’s founder and chairman Kim Jung-ju for questioning over his alleged involvement in senior prosecutor Jin Kyung-joon’s suspicious trading of the company’s stocks.
The investigation team led by a specially appointed prosecutor also looked into Nexon’s alleged irregularities, and whether Kim provided Jin benefits in return for favors such as shielding the company from investigations.
The summons came a day after the team raided 10 sites including Kim’s residence and office in Seoul and Jeju Island as well as Jin’s residence in southern Seoul.
“I’ll cooperate fully with prosecutors,” Kim told reporters before facing the questioning. “I’m sorry for causing the stir.”
In March, it was found that Jin made some 12 billion won in profit after selling Nexon shares which he purchased in 2005 at much lower prices. At the time, Jin bought 10,000 shares for 400 million won.
Questions arose over where Jin had gotten the money to buy the stocks, and Nexon last month admitted to having lent the amount to Jin and other investors. But controversy escalated as it became known that the company offered the loan without interest.
In addition, because Nexon was not listed when Jin purchased the company’s stocks, it would have been hard for him to know about the company selling its shares.
Because Jin and Kim went to the same university and their families are close, suspicions arose that Kim provided insider information to Jin when the company’s business started to pick up.
Suspicions were also raised that Nexon provided Jin two luxury sedans, a Hyundai Genesis and a Mercedes-Benz, which were initially leased by the company, but later handed over to Jin’s relatives.
Before Kim’s summons, Jin’s legal representative submitted a document partially acknowledging the allegations.
Jin admitted to the loan from Nexon and his purchase of the stocks. However, he claimed he was not granted favors in the process and he did not offer any favors to Kim or his company in return.
Jin also acknowledged that he received a Hyundai Genesis from Nexon under his brother-in-law’s name.
The prosecution is expected to soon summon Jin for questioning.
On Monday, civic group Spec Watch filed a complaint with the prosecution against Kim, alleging he was involved in professional negligence, embezzled corporate funds and evaded taxes amounting to some 2.8 trillion won. Kim allegedly caused losses when he sold Nexon Korea to Nexon Japan. In addition, Kim is suspected of having embezzled over 10 million won in the process of purchasing NXP, a real estate unit of Nexon, at extremely low costs.
The civic group claimed Kim provided Jin information on stock trading and other benefits in exchange for covering up Nexon’s malpractices.