Prosecution Seeks 8-Year Prison Sentence for Hanjin Group Affiliate CEO in Fraud Conspiracy with Late Cho Yang-ho

Last Year Deceased Chairman Cho's Indictment Dismissed
5-Year Prison Sentence Proposed for 'Chamyung Pharmacy' Accomplice

The Seoul Metropolitan Police Agency's Intelligent Crime Investigation Unit conducted a search and seizure at the headquarters office of Jungseok Enterprise, a subsidiary of Hanjin Group, in Jung-gu, Seoul, on the 4th. Jungseok Enterprise is suspected of paying wages on behalf of security guards who worked at the residence of Cho Yang-ho, chairman of Hanjin Group. The photo shows the Hanjin Building on that day. Photo by Moon Honam munonam@

[Asia Economy Reporter Yoo Byung-don] The prosecution has requested a prison sentence for the CEO of a Hanjin Group affiliate, who was identified as an accomplice in the case involving the embezzlement of brokerage commissions from aircraft equipment and in-flight duty-free goods linked to the late Cho Yang-ho, chairman of Hanjin Group.

At the sentencing hearing held on the 7th at the Seoul Southern District Court Criminal Division 12 (Presiding Judge Oh Sang-yong), the prosecution asked the court to "sentence him to 8 years in prison." Jeongseok Enterprise is an unlisted affiliate managing Hanjin Group’s real estate and other assets.

The prosecution explained, "Mr. Won oversaw the practical execution of multiple crimes in this case," and added, "The sentence was determined considering the defendant’s position, the scale of the damage caused, and the social impact."

In response, Mr. Won’s defense attorney argued, "There is a lack of objective evidence to prove the criminal acts claimed by the prosecution," and "There are many issues with the facts underlying the indictment."

Previously, in October 2018, Mr. Won was indicted without detention alongside Chairman Cho on charges including fraud and breach of trust. Chairman Cho passed away from an illness in the United States in April last year, leading to the dismissal of the charges against him.

Mr. Won is accused of colluding with Chairman Cho to insert intermediary companies during the procurement of aircraft equipment and in-flight duty-free goods from suppliers, thereby unjustly collecting brokerage commissions.

The prosecution believes that from 2013 to 2018, Chairman Cho collected brokerage commissions amounting to approximately 19.6 billion KRW under the names of duty-free brokerage companies owned by his family, such as Trion Trade.

Mr. Won is also charged with causing a loss of about 4.1 billion KRW to his own company by purchasing shares of Jeongseok Enterprise, which were held by Cho’s children Hyun-ah, Won-tae, and Hyun-min, at inflated prices.

The prosecution also requested five-year prison sentences for two others, including pharmacist Lee, who were indicted alongside Chairman Cho on charges including violations of the Pharmaceutical Affairs Act, stating that "they operated an abnormal pharmacy for 14 years."

They are accused of conspiring with Chairman Cho to open a "ghost pharmacy" under a borrowed name near Inha University Hospital and fraudulently receiving approximately 152.2 billion KRW in medical benefits from the National Health Insurance Service.

The prosecution concluded that Chairman Cho contacted pharmacist Lee, who had the necessary qualifications, through Mr. Won to open the pharmacy, and that Cho effectively operated the pharmacy by taking most of the profits.

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