Hanwha Group chairman Kim Seung-youn was put into prison Thursday on conviction of embezzlement and other illegal financial activities. Seoul Western District Court sentenced him to four years in prison and fined 5.1 billion won ($4.5 million).
In January 2011, Kim was indicted without detention on charges of illegally making Hanwha Group subsidiaries guarantee payment for the 320 billion won debt held by companies he was operating under borrowed names between 2004 and 2006, and then embezzling the funds.
In addition, Kim was accused of causing damages of 480 billion won to Hanwha Group subsidiaries and small shareholders by embezzling company funds through bank accounts and companies he held under borrowed names.
The prosecutors had also accused the 60-year-old of selling Hanwha S&C and Dongil Petroleum, held by a Hanwha subsidiary, to his children and other relatives for below-market prices, incurring losses of more than 100 billion won.
For the charges, the prosecution on July 16 demanded a nine-year prison sentence and a 150 billion won fine.
“Chairman Kim incurred losses to the company by using his power and status of his family,” Judge Seo Gyung-hwan said in the ruling, adding that Kim’s apparent lack of remorse contributed to the sentencing.
Along with Kim, Yeochun NCC Co. CEO Hong Dong-wook was given a four-year jail term and 1 billion won fine for repaying debts held by Kim’s firms with Hanwha funds.
