Prosecutors conducted a search of LS Securities for allegations of corruption related to real estate project financing.

LS Securities headquarters. /Courtesy of News1

According to the financial investment industry on the 13th, prosecutors conducted a search of LS Securities on this day as part of an investigation into violations of the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes.

On this day, it is reported that materials were secured not only from the PF-related business division but also from key figures such as Kim Won-kyu, the representative of LS Securities.

LS Securities rebutted opinions suggesting that the scope of the investigation has expanded to include upper management such as the CEO and vice president. A representative from LS Securities said, “It is true that prosecutors conducted a search, but the investigation has not expanded to major executives, and we have cooperated by providing materials necessary for the investigation.” Kim has reportedly been questioned as a witness.

Earlier, prosecutors launched an investigation into LS Securities' PF corruption at the request of the Financial Supervisory Service in January of this year. An LS Securities executive, identified only as A, is suspected of improperly obtaining about 500 billion won through the use of information related to establishment development obtained during the processing of land contract loans and brokering bridge loans and PF projects.