This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:24 p.m. on Aug. 18, 2026.
The path has opened for the domestic extradition of Lee In-gwang, former Esmo chair, the main culprit behind the "Lime scandal," which triggered the largest hedge fund redemption freeze in Korea. Lee, who had been on the run in France, was arrested there through international joint investigation and has since tried to buy time by suing the French government to overturn the extradition decision. He had avoided extradition to Korea while the case proceeded for two years after his arrest, but the French administrative court recently dismissed his suit, making his extradition to Korea possible.
According to the capital market industry and the local court on the 18th, the French Council of State last month dismissed Lee's petition to cancel the decision to extradite him to Korea.
Lee is known as part of the "Lime chairmen group" along with Kim Bong-hyun, former Star Mobility chair, and Kim Jung-soo, former Lead chair. He is accused of mobilizing Lime Asset Management funds to acquire listed companies such as Esmo and Esmo Materials and of stock price manipulation and embezzlement of company funds. As these allegations surfaced, Lime Asset Management faced a redemption freeze in 2019. The amount frozen at the time reached about 1.6 trillion won, and more than 4,000 investors were reportedly affected.
After prosecutors began their probe, Lee used equity in Tongyang Networks that he had held under a borrowed name as collateral to obtain loans worth hundreds of billions of won, fled overseas, and has not yet returned to Korea. Domestic investigators issued an Interpol red notice for Lee and, in 2024, succeeded in arresting him in Nice, France, in cooperation with local police and Interpol.
However, even two years after his arrest, Lee remains in France and no domestic investigation has taken place. Although a French court had already approved Lee's extradition to Korea in September last year, actual extradition had not occurred because Lee filed suit with the Council of State seeking to overturn the extradition decision. He even proceeded with the trial out of custody, as his bail application was granted during the extradition review that began right after his arrest.
However, with the Council of State dismissing Lee's suit to overturn the extradition decision, the way appears clear for his extradition to Korea. The Council of State renders the final judgments in administrative lawsuits, effectively concluding the suit to cancel the extradition decision.
According to the judgment, Lee argued that extradition to Korea was unlawful because he could face an abnormally high sentence in Korea and due to procedural propriety issues in the extradition decision sent by the French government. But the French court found that, given the gravity of the charges Lee faces, even a life sentence would not constitute inhumane punishment, and it determined there were no legal problems in the extradition decision process.
The Council of State panel said, "The individual is wanted in connection with financial crimes worth hundreds of billions of won, and the argument that extradition to Korea would violate the human rights convention cannot be accepted," adding, "The petition to cancel the extradition decision is dismissed."
Although the legal obstacles to Lee's extradition to Korea have been removed, actual extradition has not taken place even now, a month later.
In the industry, there are even suspicions that local investigative authorities in France have not secured Lee's custody. A source familiar with Lee's recent movements said, "There is talk that Lee had been staying in France and fled again one to two months ago," adding, "It is possible the French judicial authorities have not secured Lee's custody."