▲ Former Daewoo Shipbuilding & Marine Engineering Construction Chairman Kim Yong-bin
Former Daewoo Shipbuilding & Marine Engineering Construction Chairman Kim Yong-bin, who is awaiting a first-instance ruling on charges of reaping 28.5 billion won in unfair profits by inflating stock prices through fraudulent disclosures, has been sentenced to prison and taken into custody in a separate breach of trust case involving 7.3 billion won.
The 35th Criminal Settlement Division of the Seoul Central District Court (Presiding Judge Baek Dae-hyun) sentenced former Chairman Kim, who was indicted on charges including breach of trust under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, to four years in prison and ordered him detained in court the previous day.
Kim was put on trial on charges of inflicting a total of 7.3 billion won in losses on companies under his control during the process of acquiring Korea Corporation (now MPC Plus) in March 2017.
Specifically, Kim is accused of causing approximately 2.56 billion won in losses by having Korea Restructuring, a paper company he operated, purchase shares valued at 2,580 won per share at the time for an inflated price of 5,290 won.
He is also charged with causing losses by lending 4.8 billion won in funds from Korea Technology to Korea Restructuring—a company lacking sales or repayment capacity—to secure funds for the stock purchase.
The court found all of these charges guilty.
Kim's defense argued that Korea Restructuring only provided its name without actually bearing any costs, meaning the crime of breach of trust was not established, and that the 4.8 billion won was also executed as stock purchase funds without any intent to commit breach of trust. However, the court did not accept these arguments.
Separately from this case, Kim is awaiting a first-instance ruling at the Seoul Southern District Court on charges of taking 28.5 billion won in unfair profits. He is accused of inflating stock prices by paying for a paid-in capital increase with borrowed money during Korea Corporation's capital increase in December 2018 and making false disclosures about entering the biotechnology business.
During the sentencing hearing held last month, prosecutors demanded 15 years in prison, a fine of 142.85 billion won, and the forfeiture of 28.57 billion won for Kim.
The sentencing date has been set for December 16.
(Photo: Yonhap News)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.