'Embezzlement and Breach of Trust' Hwang Wookjeong KDFS CEO Sentenced to Suspended Prison Term

[Financial News] Hwang Wookjeong, CEO of KDFS, who was tried for embezzling and breaching trust with tens of billions of company funds, has been sentenced to a suspended prison term.
According to the legal community on the 5th, the Supreme Court's 1st Division (Presiding Judge Shin Sookhee) confirmed the original sentence of 2 years and 6 months imprisonment with 3 years probation for CEO Hwang, who was indicted for violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement and breach of trust).
CEO Hwang was tried for embezzling and breaching trust with approximately 4.8 billion won of company funds from 2017 to 2023. KDFS is a subcontractor managing facilities for KT Telecop, and prosecutors uncovered CEO Hwang's charges during the investigation of the 'KT Preferential Contract Suspicion'.
Specifically, CEO Hwang is accused of embezzling company funds or causing damage to the company by paying false consulting fees and subcontracting to resolve a management dispute with Kang Sangbok, former chairman of Korea Telecom Industry Development, who was a major shareholder of KDFS.
He is also accused of falsely registering two children as employees and providing corporate cards to outsiders, including an assistant manager in the management support office of KT headquarters.
In the first trial, the court recognized only 2.6 billion won out of the 4.8 billion won embezzlement and breach of trust amount determined by the prosecution as the damage amount and sentenced CEO Hwang to 2 years and 6 months imprisonment.
The first trial court pointed out, "The defendant received orders from KT, which has a public nature, and made improper requests to contacts he knew from past connections, providing financial benefits through corporate cards, etc., and increased company profits in an illegal manner to benefit his children."
In the second trial, CEO Hwang's sentence was reduced to 2 years and 6 months imprisonment with 3 years probation. The second trial recognized a reduced damage amount of over 2.2 billion won compared to the first trial.
The second trial court explained the sentencing reasons, "The total damage amount reached over 2.2 billion won due to using or disposing of company funds without going through proper procedures like a personal business owner," but also considered "the defendant's sincere reflection, full compensation of the damage, and some charges being judged not guilty in this court."
The Supreme Court dismissed the appeal, seeing no error in the original judgment.

jisseo@fnnews.com Minji Seo Reporter