Former Meritz Executive Gets Sentence Reduced to 7.5 Years in 2nd Trial for Illicit Loans Totaling Around 100 Billion Won

A former executive of Meritz Securities, who was put on trial on charges of receiving illicit loans amounting to roughly 100 billion won through the mediation of subordinates while working at the company, has had his prison sentence reduced in the second trial.

On the 22nd, Criminal Division 4-1 of the Seoul High Court (Presiding Judges Kim In-kyum, Sung Ji-yong, and Jeon Ji-won) sentenced the former executive, surnamed Park, to 7 years and 6 months in prison—a 6-month reduction from the 8-year sentence in the first trial—along with a fine of 1 billion won, on charges including embezzlement and bribery under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes.

Former Meritz Securities employees surnamed Kim and Lee, who were co-indicted on charges of taking money from Park and arranging the loans, were each sentenced to 5 years in prison, a fine of 500 million won, and forfeiture of approximately 460 million won for Kim, and 5 years in prison, a fine of 400 million won, and forfeiture of approximately 380 million won for Lee.

These sentences are the same as those handed down in the first trial.

The appellate court, upholding the first trial's ruling, found Park guilty of securing 118.6 billion won in loans from other financial institutions between October 2014 and September 2017 through the mediation of his subordinates, Kim and Lee, while he was working at Meritz Securities.

Investigations revealed that he used the funds to invest in real estate through a company established under his family's name.

However, the second-trial court acquitted Park of charges regarding the acquisition and leasing of 11 properties using real estate project financing (PF) information obtained during the course of his duties, overturning the first trial's guilty verdict on that count.

The court explained that this information does not fall under the category of undisclosed information prohibited from use by relevant laws.

Regarding the sentencing, the court reprimanded Park, stating, "As the superior to Kim and Lee, he dragged them into the crime, orchestrated the offense, and effectively monopolized the massive criminal proceeds. Considering that he has denied all charges up to the second trial and shown no remorse, a heavy prison sentence is inevitable."

(Photo: Yonhap News)
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