Representative of Hanjin Group Affiliate Involved in Opening Cho Yang-ho's Proxy Pharmacy Sentenced to 5 Years in Prison

[Asia Economy Reporter Lee Jung-yoon] The representative of a Hanjin Group affiliate who conspired in the process of the late Cho Yang-ho, chairman of Hanjin Group, establishing a pharmacy under a borrowed name and embezzling brokerage commissions from aircraft equipment and in-flight duty-free goods was sentenced to prison in the first trial.

The Criminal Division 12 of the Seoul Southern District Court (Presiding Judge Oh Sang-yong) sentenced Won, CEO of Jeongseok Enterprise, to five years in prison on the 20th on charges including fraud and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. Jeongseok Enterprise is an unlisted affiliate managing Hanjin Group’s real estate and other assets.

The court stated, "The deceased (late Chairman Cho Yang-ho), using his position as chairman of Hanjin Group and chairman of the Inha University Hospital Foundation, effectively controlled and operated the pharmacy through the defendant and received profits annually," adding, "The amount defrauded from the National Health Insurance Service due to the defendants’ unqualified pharmacy establishment reached 152.2 billion KRW."

Furthermore, the court recognized the breach of trust charge, stating, "Won acquired Jeongseok Enterprise shares held by Chairman Cho’s children, Hyun-ah, Won-tae, and Hyun-min, at an inflated price, thereby gaining financial benefits and causing equivalent losses to Jeongseok Enterprise."

However, regarding the charge that Won conspired with Chairman Cho to insert an intermediary company during the purchase of aircraft equipment and in-flight duty-free goods from suppliers to unjustly collect brokerage commissions, the court acquitted him, stating, "It is difficult to prove the crime based solely on the evidence submitted by the prosecution."

In addition, the court sentenced pharmacist Lee and her husband Ryu, who were prosecuted for operating a pharmacy under a borrowed name near Inha University Hospital in conspiracy with Chairman Cho, to three years in prison with a four-year probation and three years in prison, respectively. Considering that the defendants sincerely participated in the trial and there was no risk of flight, the court did not order detention in court.

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