Choi Seon-won Side Denies Charges, Claims "Prosecutors Forcibly Framing It as a Serious 'Chaebol Crime'"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Choi Sun-won, chairman of SK Networks, who was arrested and indicted on charges of embezzlement and breach of trust involving 200 billion won, denied the charges at his first trial on the 22nd, claiming that the prosecution forcibly framed it as a "chaebol crime."

Choi's lawyer stated at the trial held before the 23rd Criminal Division of the Seoul Central District Court (Presiding Judge Yoo Young-geun) that "all the allegations lack timeliness, and some have no actual damage, yet the prosecution framed it as a serious chaebol crime and indicted him."

The lawyer argued, "This case started when the Financial Intelligence Unit detected suspicious money flows in November 2017 and referred it to the prosecution. Although it began with suspicions of overseas slush funds, even after thorough and meticulous investigations, no overseas slush funds were found."

He also emphasized, "The prosecution conducted a wide-ranging investigation over several years, including raids on various financial accounts and SK affiliates, and summoned 125 people for questioning."

The prosecution charged that Choi embezzled corporate funds by lending affiliate money to a company in which he holds most of the shares, causing losses to the affiliates, or by using corporate money to pay for a capital increase he was obligated to pay. The total amount of the embezzlement and breach of trust charges is reported to be 223.5 billion won.

Regarding the company in which Choi holds shares borrowing affiliate money, the lawyer said, "The money was borrowed to purchase land, and although collateral was not temporarily set to quickly obtain project financing (PF) loans, it was effectively as if collateral existed."

The lawyer also addressed the charges that Choi falsely paid affiliate money to relatives under the guise of salaries, stating, "He admits to the incorrect facts," but argued, "It was related to SK Networks' expansion into South America and social contribution activities, so there was a business relevance."

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