Prosecutors Demand Prison Sentence... DL Chairman Lee Hae-wook Says "Thank You to the Prosecutors for Their Hard Work" (Comprehensive)

Agent Emphasizes "Noblesse Oblige Model"
Court Scheduled to Deliver Verdict on the 27th of This Month in the Afternoon

Chairman Lee Hae-wook of DL Group, who was indicted on charges of unfairly supporting a privately owned company, is attending the first trial sentencing hearing held at the Seoul Central District Court in Seocho-gu, Seoul, on the morning of the 13th.
[Image source=Yonhap News]

[Asia Economy reporters Seongpil Jo and Daehyun Kim] The prosecution has requested a prison sentence of 1 year and 6 months for Lee Hae-wook, chairman of DL Group, who was indicted on charges of unfairly supporting affiliated companies.

At the sentencing hearing held on the morning of the 13th at the Seoul Central District Court Criminal Division 5, presided over by Judge Kim Jun-hyuk, the prosecution stated, "We intend to point out the unfair transfer of wealth that repeatedly occurs in leading domestic conglomerates," and made this sentencing request. The prosecution also asked the court to impose a fine of 100 million won each on DL Corporation and its subsidiary Glad Hotel & Resort, which were indicted together.

The prosecution said, "The defendant, an affiliate of the 19th largest corporate group in Korea with total assets of 20 trillion won and 36 affiliates, used other affiliates to gain tens of billions of won in personal profits, making corresponding punishment inevitable," adding, "The attitude of denying the crime in court and showing no sign of remorse must be considered as an unfavorable factor in sentencing."

Chairman Lee did not show an attitude of remorse as the prosecution requested in his final statement. Instead of expressing remorse, he made remarks indicating that he would continue to work harder for the company. Toward the end of his statement, he said, "The prosecutors have worked hard all this time," and "I would like to take this opportunity to sincerely thank the presiding judge for listening to my opinions." Chairman Lee has denied the charges throughout the trial process.

The DL representative also emphasized, "Since its establishment in 1939, DL has overcome rapidly changing management environments and grown. While other companies have faced bankruptcy or changes in ownership, DL is the only company in Korea that has prospered for three generations and served its shareholders," adding, "We absolutely do not agree that our company has embezzled private profits. The DL family has set an example of noblesse oblige, and we believe that our responsibility is great for not properly supporting the company, which is why we will strive to become a company that complies with the law going forward." The court decided to announce the verdict at 2 p.m. on the 27th.

Chairman Lee was indicted on charges of violating the Fair Trade Act by transferring the trademark rights of the group’s hotel brand "GLAD" to APD, a company wholly owned by him and his son, and allowing the subsidiary Ora Tourism (currently Glad Hotel & Resort) to use it. He was also charged with having Ora Tourism pay approximately 3.1 billion won in fees to APD under the name of brand usage rights.

Earlier, the Fair Trade Commission found that the fees paid by Ora Tourism to APD were excessively high and constituted an "unfair provision of benefits to related parties" under the Fair Trade Act. In May 2019, the commission reported Chairman Lee and related companies to the prosecution. After receiving the report and reviewing the case, the prosecution indicted Chairman Lee and others in December of the same year.

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