Prosecution Seeks 7-Year Prison Sentence for Former Skin Food CEO Jo Yoon-ho Over 12 Billion Won Shopping Mall Profit Embezzlement

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] The prosecution has requested a 7-year prison sentence for former Skinfood CEO Cho Yoon-ho, who was indicted and detained on charges of embezzling approximately 12 billion KRW from the company's online shopping mall revenue.

On the morning of the 28th, at the Seoul Western District Court Criminal Division 12 (Presiding Judge Lee Jeong-min), during the final trial for Cho's breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, the prosecution submitted their opinion requesting a 7-year prison sentence.

Cho is accused of directing about 11.3 billion KRW of the company's online shopping mall sales revenue to be paid into his personal account from March 2006 to December 2018. He is also charged with having a Skinfood subsidiary pay approximately 900 million KRW in total for the purchase, maintenance, and medical expenses of two horses bought for his nephew between 2011 and November 2016.

The prosecution stated, "Considering that the amount involved exceeds 10 billion KRW and the significant damages suffered by suppliers, franchise owners, and distributors, we ask for a strict sentence."

In response, Cho's defense attorney said, "He fully admits to the charges and deeply regrets his actions," but added, "Please also consider that consumer preferences shifted from brand shops to curated shops for mid-priced cosmetics, and that the company's operations were severely impacted by the 'THAAD retaliation' issue affecting the key Chinese market."

They continued, "The personal appropriation of shopping mall revenue was actually money that could have been received as executive compensation, and damages such as creditors' deposits and sales commissions have been recovered," adding, "As the company faced difficulties, he also gave up his own compensation and retirement benefits," appealing for leniency.

Former CEO Cho himself said, "While founding and managing Skinfood, there were shortcomings in various procedures," and added, "I deeply reflect on my actions and sincerely apologize to those who suffered due to my mismanagement."

This content was produced with the assistance of AI translation services.