Prosecutors indict Hwimun Suk chairman over accounting fraud, embezzlement

Prosecutors have indicted the chairman of the Hwimun Suk educational foundation and two other executives on charges including embezzlement, breach of trust, and violating the Private School Act. The indictment follows an investigation into allegations that the foundation's chairman, Kim Jeong-bae, and other employees siphoned off school funds.

According to legal sources, the Seoul Central District Prosecutors' Office's 7th Criminal Division accused Kim and his associates of diverting school funds. Specifically, they allegedly processed revenue that should have been recorded in Hwimun High School's accounts into the foundation's accounts, thereby embezzling school assets.

The Seoul Metropolitan Police Agency initially investigated the case based on an audit by the Seoul Office of Education. In late October of the previous year, the police concluded that the suspects had embezzled approximately 120 million won and forwarded the case to the prosecution. However, during a supplementary investigation, prosecutors analyzed accounting data and uncovered evidence of additional embezzlement totaling about 218 million won. This discovery led to the inclusion of breach of trust charges.

The case highlights concerns about financial mismanagement within private educational institutions. The prosecution's further investigation aimed to thoroughly examine the accounting irregularities and ensure accountability for any misappropriation of funds intended for educational purposes.