An appeals court handed down a 42-month jail term to the chief of a local steelmaker Wednesday for gambling abroad with millions of dollars he embezzled.

The Seoul High Court also ordered Chang Sae-joo, chairman of Dongkuk Steel Mill Co., to forfeit some 1.4 billion won ($1.2 million).

The business tycoon was indicted in May 2015 on charges of misappropriating more than 20 billion won from the company since 2003 and using part of it to gamble in Las Vegas.

A lower court had sentenced him to 42 months in prison with a fine of 10 million won. It had also ordered Chang to forfeit another 510 million won.

In the lower court, the defendant was not convicted of habitual gambling. The appeals court, however, found him guilty of the charge, acknowledging evidence from the U.S. casino submitted by prosecutors.

"Though most of the financial losses incurred to the company have been recovered, it is not enough to recover the damage on the employees' honor and the trust in the company," the appeals court said. (Yonhap)