"Shin Yong-byeong, Chairman of Shinhan Financial Group, Receives 2-Year Probation for 'New Employee Fraudulent Hiring'"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Cho Yong-byeong, Chairman of Shinhan Financial Group, who was prosecuted for involvement in the fraudulent hiring of new employees at Shinhan Bank, was sentenced to six months in prison with a two-year probation in the first trial.

The Criminal Division 11 of the Seoul Eastern District Court (Presiding Judge Son Joo-chul) held a sentencing hearing on the morning of the 22nd regarding Chairman Cho's charge of obstruction of business and delivered this verdict. The court sentenced Yoon, the then Deputy Head of Human Resources, who was jointly indicted on the same charge, to one year in prison with a two-year probation. Shinhan Bank as a corporation and one HR staff member were acquitted.

The court stated as the reason for sentencing, "Reflecting the relationship between applicants and internal or external personnel in the decision of acceptance during the new employee recruitment process undermines procedural fairness." It added, "Even if Chairman Cho did not give explicit instructions to the HR department, merely informing about a specific applicant is sufficient to impair the appropriateness of hiring," and "He is not free from responsibility for participating in and failing to improve the illegalized practice."

Chairman Cho is accused of allowing preferential hiring of executives' children while serving as the President of Shinhan Bank from 2015 to 2016. In the sentencing hearing held in December last year, the prosecution requested a three-year prison sentence and a fine of 5 million KRW for Chairman Cho, and one year and six months in prison with a fine of 3 million KRW for Yoon. For other HR executives, the prosecution requested prison terms ranging from eight months to one year and six months, and a fine of 5 million KRW for Shinhan Bank as a corporation.

Immediately after the sentencing, Chairman Cho told reporters, "I regret the sentencing result," and added, "I have provided extensive explanations over 45 trials regarding the charges, but I acknowledge there were shortcomings. I will strive to receive a fair judgment through appeal in the future."

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