'Breach of Trust Charge' SPC Chairman Heo Young-in Acquitted in Appeal Trial

"CP Trademark Breach of Trust Intent Not Found Despite Guilty Verdict in First Trial"

[Asia Economy Reporter Seongpil Cho] Heo Young-in, chairman of SPC Group, who was prosecuted for causing damage to the company by transferring the trademark rights of 'Paris Croissant' to his wife, was acquitted in the second trial.

The Seoul High Court Criminal Division 9 (Presiding Judge Han Gyu-hyun) on the 9th acquitted Chairman Heo, who was charged with breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. The first trial sentenced him to one year in prison with a two-year probation.

The court ruled that there was no intent regarding the breach of trust related to the 'CP trademark rights,' which was recognized as guilty in the first trial. The court explained, "Considering the process of the company signing the trademark usage contract, the company's shareholder composition, and the situation the company was in at the time in 2012, it is difficult to see that Chairman Heo had the intent to commit breach of trust in concluding the trademark rights contract." It added, "The original court ruling recognized the intent of breach of trust regarding the trademark rights, but we find the judgment to be unlawful. We accept the defendant's claims on this matter and reject the prosecution's claims."

Chairman Heo is accused of causing damage to the company by transferring all the 'Paris Croissant' trademark rights, which were owned half by the company and half by his wife Lee, to Lee in 2012, and making the company pay 21.3 billion KRW in trademark usage fees until 2015. The Paris Croissant trademark rights were originally owned by Lee, but in 2002, they were jointly owned by the company and Lee (50% each). Later, the company transferred its shares back to Lee in 2012, and the prosecution judged that the company paid Lee 0.125% of total sales as trademark usage fees.

Previously, the first trial acquitted Chairman Heo of most charges but found him guilty only of breach of trust related to the CP trademark rights. Both Chairman Heo and the prosecution appealed this ruling. The appeal trial was originally concluded in June last year, but the sentencing date was postponed as Chairman Heo's side requested a resumption of arguments, and the trial continued for nearly a year.

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