STAR SM REIT has recovered the full amount of 877 million won related to the embezzlement of its CEO.
On the 21st, STAR SM REIT announced that it had filed a complaint regarding additional embezzlement and breach of trust during the accounting audit process. The alleged amount of embezzlement is 6.14 billion won, and the alleged amount of breach of trust is 877 million won.
Legal proceedings are underway regarding the embezzled amount that has not been received yet. The company has secured some claims through provisional seizures, and the chairman, Jang Hyun-joo, who was accused of embezzlement, is also said to be cooperating in recovering the losses.
A STAR SM REIT representative said, "We will achieve business normalization and resume transactions through the sale of management rights and a large-scale capital increase," adding, "Once the management rights are sold, the damage caused by embezzlement will also be restored."
STAR SM REIT was listed on the securities market in 2016, and its largest shareholder, 'AL136', holds an 11.17% equity stake. Last year, its name was changed from Modetour Network to STAR SM REIT, and it owns and operates MD Hotels in Dongtan and Doksan-dong as its main businesses.