Sejong Securities Head Arrested for Illegal Bond Practice

Kim Hyung-jin, chairman of Sejong Securities Co., was arrested for illegal bond deals on August 5.
The Seoul District Prosecutor's Office said that it has arrested Kim on suspicion that he made 53 billion won in profits through illegally trading 1.7 trillion won in corporate bonds of about 20 companies.
A prosecutor said that Kim had pocketed the enormous profit last year by selling corporate bonds of some 20 cash-strapped companies, including Hansol Paper and Shindongbang, much higher price which he had bought them in a discount.
According to current domestic securities regulations, the dealing of corporate and government bonds is limited only to firms with securities trading permits.
Kim then used the funds to take over Dong Ah Securities Co. last July, which is the former self of Sejong Securities.
Ten officials at investment trust firms are suspected of helping Kim to arrange the illicit deal and six of them were also behind bars on Thursday.
Shim Shang-bok : simsb@joongang.co.kr