'200 Billion Embezzlement and Breach of Trust' Chairman Cho Hyun-beom, 3 Years in Prison in First Trial... Court Detention

[Financial News] Cho Hyun-beom, Chairman of Hankook & Company Group, who was tried for embezzlement and breach of trust worth 20 billion won, was sentenced to 3 years in prison in the first trial.
Seoul Central District Court Criminal Agreement Division 23 (Chief Judge Oh Se-yong) sentenced Chairman Cho to 3 years in prison on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement) on the 29th. Chairman Cho, who was on trial in a non-custodial state after being released on bail, was detained in court.
The court divided the period of the crime based on the time when Chairman Cho's suspended sentence for another crime was confirmed on November 28, 2020, and determined the sentence. For crimes before the confirmation of the sentence, 6 months in prison was sentenced, and for crimes after that, 2 years and 6 months in prison was sentenced.
Most of Chairman Cho's charges were found guilty, but he was acquitted of the charge of making 13.1 billion won in profit by trading under favorable conditions with MKT (currently Korea Precision Works), an affiliate that manufactures tire molds (tire pattern production equipment).
The court said, "There is insufficient evidence to conclude that the defendant unfairly intervened or misappropriated business opportunities in the process of incorporating MKT as an affiliate," and "The purpose of introducing the 'New Price Table' applied to tire mold transactions with MKT was legitimate, and the method of derivation was also reasonable."
The court stated the reason for sentencing, "The period of the crime of breach of trust in business is close to 4 years, and the defendant abused his position as a member of the Hankook Tire family to commit the crime, so the responsibility is heavy and the quality of the crime is very poor."
It continued, "Apart from the part he confessed to, he denies the rest of the crimes and does not show much remorse," adding, "Despite being sentenced to imprisonment for similar crimes and being in the probation period, he committed crimes using similar methods after the sentence was confirmed."
Before being detained in court, Chairman Cho said in a small voice, "I will be in a state of deep reflection."
One manager from Hankook Tire who was indicted together was sentenced to 1 year and 6 months in prison with a 3-year probation.
Chairman Cho was indicted in March 2023 for embezzling and breaching trust of about 20 billion won by purchasing tire molds at significantly high prices from Hankook Tire affiliates and using corporate vehicles for personal use from 2014 to 2017. The prosecution demanded a 12-year prison sentence for Chairman Cho at the final trial in February.
Chairman Cho had previously been confirmed a 3-year prison sentence with a 4-year probation for embezzling a large amount of company money after receiving kickbacks from a partner company in 2020.  



scottchoi15@fnnews.com Choi Eun-sol Reporter