Court Acquits LG Family Chairman Koo Bon-neung and Others Again in Tax Evasion Charges in Second Trial

Seoul High Court, Seocho-dong, Seoul.
[Photo by Yonhap News]

[Asia Economy Reporter Choi Seok-jin] Gu Bon-neung, chairman of Heesung Group, and other members of the pro-LG family and executives, who were indicted for failing to pay capital gains tax amounting to around 15 billion KRW, were acquitted in the second trial following the first trial.

The Criminal Division 5 of the Seoul High Court (Presiding Judges Yoon Kang-yeol, Jang Cheol-ik, Kim Yong-ha) on the 24th dismissed the prosecution's appeal in the appellate trial of 14 people including Chairman Gu, who were indicted for violating the Tax Offenses Punishment Act, and two former and current finance management team leaders including Mr. A, who were indicted for violating the Act on the Aggravated Punishment of Specific Crimes, thereby upholding the original verdict of acquittal.

The court stated, "All charges against Chairman Gu and others were based on the premise that their agent Mr. A committed tax evasion. Therefore, unless Mr. A's charges are proven, the charges against the other defendants are also acquitted."

Chairman Gu, the younger brother of the late Gu Bon-moo, former chairman of LG Group, and his family were brought to trial on charges of failing to pay capital gains tax amounting to around 15 billion KRW during the transfer of affiliate company stocks.

The prosecution believed that Mr. A and others directly executed the capital gains tax evasion of the family of the group head, and held Chairman Gu and others responsible for inadequate supervision and management.

However, the first trial previously acquitted them, stating that it was difficult to find a motive for tax evasion and there was no proof of the crime.

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