'Accounting Fraud and Hiring Corruption' Former KAI CEO Ha Seong-yong Receives Suspended Sentence in First Trial

[Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] Ha Sung-yong, former CEO of Korea Aerospace Industries (KAI), who was indicted on more than 10 charges including accounting fraud, was acquitted of most charges in the first trial and received a suspended sentence.

The Criminal Division 21 of the Seoul Central District Court (Presiding Judge Kim Miri) found Ha guilty only of embezzlement and obstruction of business among the charges and sentenced him to 1 year and 6 months in prison with a 2-year suspension. The court stated, "Considering that the defendant has no prior criminal record, did not personally benefit from receiving money related to unfair hiring, and has already been detained for about a year in this case, the sentence was determined."

Regarding the allegation that Ha committed accounting fraud amounting to 500 billion KRW from 2013 to 2017 to improve business performance, the court ruled not guilty, stating, "Although some accounting standards were violated, there is insufficient evidence to recognize that the defendant conspired." However, the court found him guilty of using 180 million KRW worth of gift certificates purchased with company funds for personal use from 2013 to 2017, and unfairly passing 14 candidates who failed the open recruitment for new college graduates.

Ha was arrested in September 2017 on charges of involvement in various management irregularities including accounting fraud, holding cooperative company shares under a false name, hiring irregularities, and embezzlement while serving as CEO of KAI, and was brought to trial in October of the same year. He was granted bail in September of the following year and has been undergoing trial without detention.

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