[Summary] "Embezzlement Amount 2.7 Billion Won" Heo Kyung-hwan, Betrayed by Business Partner... Sentenced to 3 Years and 6 Months in Prison

Court: "A Large Portion of Embezzled Amount... Remaining Damage Amount Also Significant"

Comedian Heo Kyunghwan. Photo by MBC from the broadcast screen of 'People Are Good'

[Asia Economy Intern Reporter Jumi Lee] A business partner who was tried for embezzling billions of won while operating a food company with comedian Heo Kyung-hwan (40) was sentenced to imprisonment in the first trial.

According to the legal community on the 17th, the Criminal Division 27 of the Seoul Central District Court (Presiding Judges Kim Seon-il, Kang Ji-woong, Nam Yo-seop) sentenced Yang (41), a business partner of Heo who was indicted on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, forgery and use of securities, to 3 years and 6 months in prison and a fine of 10 million won.

Yang was charged with embezzling a total of about 2.73 billion won in company funds from 'Heodak' (formerly 'Eoltteolgyul'), a food distribution company represented by Heo, from February 2011 to April 2014. Yang, who was in charge of auditing at the company, is known to have controlled fund execution while holding Heo's seal and Heodak's corporate bankbook.

It was revealed that Yang frequently withdrew company funds from Heodak about 600 times whenever money was needed for a separately operated company. He is also accused of signing liquor supply contracts and issuing promissory notes using Heo's name.

Additionally, in March 2012, Yang is accused of lying to Heo that "the separately operated company had problems and could not pay taxes," receiving 100 million won, which he used for apartment pre-sale payments, entertainment expenses, debt repayments, and did not return.

In court, Yang's side claimed that he had obtained consent from Heo, who was in a partnership, but the court did not accept this. The court cited that Yang was in charge of business management from the beginning of the business while Heo handled promotion, and employees consistently testified that "Heo was never informed about company funds."

The court explained, "The embezzled amount exceeds 2.7 billion won, and the remaining damage amount appears to be substantial," adding, "The 100 million won in damages from fraud has not been recovered at all even after 9 years since the time of the crime."

It continued, "Yang committed the crime by exploiting the fact that the company he operated and the victim company shared the same office and that the division of work among employees was not properly carried out," and stated the sentencing reason as, "However, Yang has no prior record beyond probation for imprisonment."

Meanwhile, Heo Kyung-hwan explained the incident through his Instagram, saying, "I think comedians should give laughter, not burdens, so I endured and overcame it quietly, but there are many articles today. (I consider this also as attention.)"

Heo added, "I was betrayed by a trusted colleague, but thanks to that colleague, I was able to stand up again. Thank you all for being surprised, supporting, and worrying today. It was a costly lesson, but thanks to it, I grow every year and the company has become stronger."

Full text of Heo Kyung-hwan’s Instagram post below

I think comedians should give laughter, not burdens.

I endured and overcame it quietly, but there are many articles today ㅜㅜ ㅎㅎ (I consider this also as attention.)

I was betrayed by a trusted colleague, but thanks to that colleague, I was able to stand up again. Thank you all for being surprised, supporting,

and worrying. It was a costly lesson, but thanks to it, I grow every year and the company has become stronger.

Now, I am grateful to the customers who come looking at the products, not Heo Kyung-hwan,

and to those who smile at my comedy. I will be more attentive in broadcasting and business^^ Be happier tomorrow♡

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