Former Chairman Park Sam-gu of Kumho, Suspended Sentence in Appeal...Significant Reduction from 10-Year Sentence in First Trial

[Financial News] Former Chairman Park Sam-gu of Kumho Asiana Group, who is accused of unfairly supporting personal companies by mobilizing affiliates, had his sentence reduced in the second trial.
Seoul High Court's Criminal Division 2 (Presiding Judge Kim Jong-ho) sentenced the former chairman to 2 years and 6 months in prison with a 4-year suspended sentence on the 18th for charges including embezzlement under the Special Economic Crimes Act. 
The court found him guilty of violating the Fair Trade Act but not guilty of charges related to selling stocks at low prices, embezzlement, or breach of trust. 
Former Chairman Park was brought to trial in 2021 on charges of establishing Kumho Enterprise (Kumho Express), a special purpose company (SPC) he owned, to regain management control and attempting to acquire shares of Kumho Industrial, the holding company of the group and parent company of Asiana Airlines.
The prosecution charged that former Chairman Park withdrew 330 billion won from four affiliates, including Kumho Terminal, in 2015 to use as payment for acquiring shares of Kumho Industrial held by creditors, and sold shares of Kumho Terminal held by Asiana Airlines to Kumho Enterprise at a low price in 2016.
The first trial court sentenced the former chairman to 10 years in prison. At that time, the court recognized most of the prosecution's charges as guilty, explaining that "the opportunity for recovery disappeared during the process of concealing the crime." Former Chairman Park was detained in court but was released on bail during the appeal trial in 2023 and was tried without detention.

theknight@fnnews.com Jung Kyung-soo Reporter