Supreme Court Confirms 4-Year Prison Sentence for Jeon Yoon-su, Former Chairman of Seongwon Group, Over 20 Billion Won Wage Arrears

Supreme Court, Seocho-gu, Seoul. / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Daehyun] Jeon Yunsu, former chairman of Seongwon Group (73), who was prosecuted for wage arrears amounting to around 20 billion KRW, has been sentenced to 4 years in prison by the Supreme Court.

On the 6th, the Supreme Court's 2nd Division (Presiding Justice Cheon Daeyeop) announced that it upheld the lower court's ruling sentencing former Chairman Jeon to 4 years in prison and ordering a fine of approximately 2.08 billion KRW on charges of embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

Previously, Jeon was prosecuted for withholding about 20.7 billion KRW in wages and retirement benefits from employees between 2007 and 2010. He was also accused of embezzling and breaching trust of about 2.6 billion KRW in company funds through overseas subsidiaries from 2006 to 2009, and falsely transferring stocks worth approximately 5.9 billion KRW to evade seizure and compulsory execution by creditors.

The first trial sentenced Jeon to 5 years in prison and ordered a fine of about 2.08 billion KRW. The court emphasized, "The bankruptcy of Seongwon Construction caused enormous losses to many ordinary shareholders, and even after 10 years, the damage caused by the crime has not been restored. Moreover, he fled abroad and lived in hiding for 9 years. During that time, major affiliates went bankrupt, and employees lost their livelihoods." Seongwon Construction, famous for its apartment brand 'Sangteville,' went bankrupt about 4 years after entering court receivership in 2010 due to financial difficulties.

The appellate court acquitted him of charges related to violations of the Labor Standards Act and the Act on the Regulation of Concealment of Crime Proceeds, reducing the sentence to 4 years. This was based on the judgment that from April 2010, after the commencement of rehabilitation procedures for Seongwon Group, Jeon lost the authority to pay wages and retirement benefits.

The Supreme Court also agreed with this judgment. The court stated, "The lower court did not err in its legal interpretation regarding the determination of 'employer' and guilt in the violation of the Labor Standards Act, the establishment of the crime of embezzlement in the course of duty, and the 'improper solicitation' in the crime of breach of trust."

Meanwhile, Jo Mo, former vice chairman of Seongwon Group and wife of former Chairman Jeon, who was also prosecuted, received a confirmed sentence of 2 years and 6 months in prison with a 3-year probation period and a fine of 980 million KRW.

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