▲ Supreme Court
Former executives of Sehwa IMC (currently Dynamic Design), a Kospi-listed company who were put on trial for embezzling company funds and evading taxes, have had their prison sentences with probation finalized.
The Supreme Court's First Division (presiding Justice Chon Dae-yup) finalized the lower court's ruling today (October 1) sentencing Yu, former chairman of Sehwa IMC, who was indicted on charges including embezzlement under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, to two years and 10 months in prison with five years of probation.
The sentences for Yu's son, former vice chairman Yu—three years in prison with five years of probation and a 1 billion won fine—and former vice president Kang—two years and six months in prison with four years of probation and a 420 million won fine—were also upheld.
They were previously put on trial on charges of embezzling approximately 27 billion won in company funds between September 2006 and January 2018.
Investigations revealed that they siphoned off the money through methods such as inflating transaction amounts with subcontractors, paying false agent commissions to shell companies, fabricating employee salaries, issuing loans to affiliated companies, covering golf course construction costs, and creating employee welfare funds.
Former vice chairman Yu and Kang were also charged with evading a total of 1.6 billion won in taxes by issuing false and fraudulent tax invoices.
The first trial sentenced them to prison terms ranging from three to five years for the embezzlement of company funds.
In a separately conducted first trial regarding the tax evasion charges, former vice chairman Yu and former vice president Kang were sentenced to prison terms with probation and fines, while the corporate entity received a 500 million won fine.
In the second trial, which combined the two cases, the court acquitted the defendants of some of the embezzlement and tax evasion charges, sentencing them all to prison terms with probation, and issued a suspension of sentence for the corporate entity's 500 million won fine.
The Supreme Court dismissed the appeals filed by both the defendants and the prosecutors today, finalizing the lower court's judgment.
(Photo: Yonhap News)
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