Suspended prison sentences have been finalized for former executives of Sehwa IMC (currently Dynamic Design) who were put on trial on charges of embezzling company funds and evading taxes.

On October 1, Supreme Court Division 1 (Presiding Justice Chun Dae-yup) finalized the lower court ruling sentencing former Sehwa IMC Chairman Yu (90), who was indicted under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes for embezzlement, to 2 years and 10 months in prison with a 5-year probation.

The original rulings were also upheld for Yu's son, former Vice Chairman Yu (59), who received 3 years in prison, 5 years of probation, and a 1 billion won fine, and former Vice President Kang (51), who received 2 years and 6 months in prison, 4 years of probation, and a 420 million won fine.

They were indicted on charges including embezzling approximately 27 billion won in company funds from September 2006 to January 2018.

According to the prosecution's investigation, they siphoned off funds by inflating transaction amounts with subcontractors, using false agent commissions for paper companies, paying false employee salaries, providing loans to related companies, paying for golf course construction, and setting up 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 fake and false tax invoices.

The first trial sentenced them to prison terms ranging from 3 to 5 years regarding the embezzlement of company funds.

In a separately conducted first trial for the tax evasion case, former Vice Chairman Yu and former Vice President Kang were given suspended prison sentences and fines, while the corporate entity was fined 500 million won.

In the second trial where the two cases were merged, the court found them not guilty of some of the embezzlement and tax evasion charges, sentencing all of them to suspended prison terms.

A sentence suspension of a 500 million won fine was handed down to the corporate entity.

On the same day, the Supreme Court dismissed all appeals filed by the defendants and the prosecutor, finalizing the lower court's ruling.

Sehwa IMC, a small- and medium-sized manufacturing company based in Gwangju and listed on the KOSPI market, changed its name to Dynamic Design after its executives were sent to trial.

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