Prosecutor-General Yoon Seok-youl ordered the launch of an investigation into allegations that at least three former and sitting prosecutors were lobbied in connection with a hedge fund scandal, his office said Saturday. 

Yoon's order comes after Kim Bong-hyun, a key suspect in a financial fraud case involving Lime Asset Management Co., revealed on Friday that he spent 10 million won ($8,726) to throw a drinking party for former and incumbent prosecutors last year, and one of them took part in the investigation into the Lime scandal.

Yoon ordered a swift investigation into the allegations so as to strictly and thoroughly determine the criminal charges, according to the Supreme Prosecutors Office. 

On Friday, Justice Minister Choo Mi-ae also ordered immediate inspections of prosecutors following Kim's revelation.

Kim, the owner of Star Mobility, is believed to be the main financial source for Lime and was arrested in April on charges of embezzlement.

Lime Asset is under probe over its alleged cover-up of massive losses and subsequent suspension of fund redemption worth an estimated 1.6 trillion won.

The company is accused of having concealed investment losses and inflating investment returns in a bid to keep its customer base. (Yonhap)