'MB Cheonamdaek' Kwon Young-mi, 5 Billion Won Embezzlement and Tax Evasion, Suspended Sentence in Second Trial

[Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] Kwon Young-mi, the sister-in-law of former President Lee Myung-bak, was sentenced to a suspended prison term again in the second trial for embezzlement and tax evasion involving 5 billion won.

The Seoul High Court Criminal Division 6 (Presiding Judge Oh Seok-jun) upheld the first trial verdict that sentenced Kwon, who was indicted on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, to three years in prison with a five-year suspension and a fine of 80 million won.

The appellate court stated, "There is no error in the first trial's judgment, so the conclusion is maintained."

Kwon was indicted on charges of embezzling more than 5 billion won under false salary claims from Kumgang and Hong Eun Planning, subsidiaries of DAS, an auto parts company actually owned by former President Lee. She was also charged with evading corporate taxes amounting to 700 million won in 2009, 2013, and 2015.

The first trial mostly recognized the allegations that Kwon received company funds while being registered as an auditor of Kumgang and CEO of Hong Eun Planning without actually working.

However, regarding the tax evasion charge of about 660 million won in 2009, the court acquitted her, stating that Lee Young-bae, the former CEO of Kumgang who executed the tax evasion, did not appear to be aware of the illegal act.

Kwon is the wife of the late Kim Jae-jung, who was the brother-in-law of former President Lee and managed his assets. Based on the investigation results of former President Lee Myung-bak in 2018 and reports from the National Tax Service, the prosecution compiled and indicted Kwon for embezzlement and tax evasion crimes.

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