According to Seoul Southern District Court, Kim Jung Ju and Mr. Kang have been arrested for illegal activities as outlined in the Capital Market Act, specifically for illegal political funds, and illegal slush funds. From June to August of 2014, the two have raised $1.81 billion USD funds from the investors by making fraudulent company statements. Additionally, they shared $2.4 million USD for personal expenses. Currently,police are tracing Mr. Kang as he has gone missing. Seunghwa Freetech stocks have also been temporary halted for any trading.