'4.3 Billion Embezzlement, Coin Investment' Hwang Jung-eum Also Paid Credit Card Bills and Loan Interest with Company Funds

[Financial News]  Hwang Jung-eum, an actress from the group Sugar, who was accused of embezzling company funds, was found to have used the funds for her credit card bills and other personal expenses.

According to the Chosun Ilbo on the 11th, Hwang withdrew a total of 4.341 billion won from Hunminjeongeum Entertainment's funds into her personal account. Hunminjeongeum Entertainment is a family corporation wholly owned by Hwang.

Hwang spent 4.214 billion won of this on virtual currency investments and other expenses. She also used a total of 4.43 million won for her property and local taxes, which led to embezzlement charges. Additionally, she split the embezzled money to pay 1.04 million won in stock collateral loan interest.

Initially, Hwang tried to open a virtual currency account under the company's name but found it difficult, so she withdrew funds under the guise of temporary payments to invest in virtual currency. The prosecution noted that Hwang did not draft a contract specifying repayment terms or interest rates.

Furthermore, on July 11, 2022, Hwang took out an 800 million won loan in the company's name in Jeju Island. She withdrew 700 million won from the company account into her personal account and invested the entire amount in virtual currency. The same method was used for investments 13 times until October of that year.

The Jeju District Court indicted Hwang on December 31 last year on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. At the first trial held in May, Hwang admitted to all charges.

Through her agency Y1 Entertainment, Hwang stated, "In 2021, I was advised by people around me to increase company funds through coin investments. Although it was company funds, it was income generated from my activities, so I made an immature decision," and apologized.

Hwang announced last month on the 17th that she had repaid the entire 4.3 billion won. Y1 Entertainment stated, "We have fully repaid the amount by disposing of private property. The financial relationship between Hunminjeongeum Entertainment and Hwang Jung-eum has been resolved," and emphasized, "As the owner of a one-person corporation, I lacked tax and accounting knowledge. I deeply regret causing trouble."

Meanwhile, Hwang's second trial is scheduled to be held on August 21.


hsg@fnnews.com Han Seung-gon Reporter