Former head of LS Securities Co., Ltd. is arrested for "alleged use of undisclosed information."

A former head of LS Securities Co. has been arrested for allegedly siphoning off 83 billion won in loans using undisclosed real estate information he learned from his job.

The Seoul Central District Court issued an arrest warrant for Kim, a former head of LS Securities Co., who is suspected of being injured under the Specific Economic Crimes Aggravated Punishment Act, saying he could get rid of the evidence and run away.

On the other hand, the warrants of two executives and employees of LS Securities were dismissed.

They are accused of using undisclosed information to carry out real estate project financing projects and siphoning off 83 billion won in loans outside the developer.

Prosecutors, who launched an investigation at the request of the Financial Supervisory Service, have raided more than 10 locations, including LS Securities and Hyundai Engineering & Construction headquarters, a real estate contractor, last month to confirm the facts.