Boss of top conglomerate guilty of embezzling funds
Thursday 16 August 2012
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EmailThe chairman of one of South Korea's largest industrial conglomerates was sentenced to four years in prison and fined 5.1 billion won (£2.9m) for embezzlement today.
Kim Seung youn used his influence over Hanwha Corporation affiliates to aid his brother's near-bankrupt companies, which caused over 288 billion won (£162m) in losses at the Hanwha businesses.
The court also found Mr Kim guilty of forcing Hanwha's affiliates to sell shares in an oil company to his sister at below-market prices to help his sister's attempt to acquire the company.
He also dodged taxes by trading shares under his employees' names and the court said the company's culture had allowed Mr Kim to steal corporate funds.
According to documents confiscated from Hanwha headquarters, employees were instructed to regard Mr Kim as a god-like figure and "an object of absolute obedience."
It was not his first brush with the law. He was pardoned in 2008 after beating a worker.
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