'Power-type Gate' Lee Yong-ho, Sentenced to 2 Years in Prison for Embezzlement After Release

Supreme Court, Seocho-gu, Seoul. / Photo by Honam Moon munonam@

[Asia Economy Reporter Kim Daehyun] Lee Yong-ho, former chairman of G&G Group (63), who was the main figure in the 'Lee Yong-ho Gate,' a representative power-type corruption case involving presidential relatives and the brother of the Prosecutor General during the Kim Dae-jung administration, has been sentenced to two years in prison by the Supreme Court for additional crimes including concealment of criminal proceeds and embezzlement.

On the 17th, the Supreme Court's 2nd Division (Presiding Justice Lee Dong-won) announced that it upheld the lower court's ruling sentencing Lee to two years in prison in the final appeal trial on charges including violation of the Act on the Regulation of Concealment of Criminal Proceeds.

Previously, Lee was prosecuted in 2014 for using 1.23 billion won of company funds from a venture capital firm in which he had invested shares to repay personal debts. He was also charged with hiding the fact that 25.1 billion won, illegally borrowed by his accomplice Kim from the Gimhae Credit Cooperative in Gyeongnam, was criminal proceeds.

At that time, it was investigated that Lee committed these crimes less than a year after being released from prison where he served three years for fraud.

The first trial sentenced Lee to two years in prison, stating, "While managing the company, he registered family members and others on the company registry and committed crimes under their names, cleverly hiding his own involvement, which shows the bad nature of the crime."

The second trial acquitted some of the embezzlement charges that the first trial had found guilty but maintained the same sentence. The court at that time pointed out, "The defendant committed the crime during the probation period, and the amount embezzled is large. Even with some acquittals, it is difficult to adjust the sentence differently from the first trial."

The Supreme Court also agreed with this judgment. The court stated, "The lower court did not err in the legal principles regarding the establishment of embezzlement under the Act on the Aggravated Punishment of Specific Crimes, violation of the Act on the Regulation of Concealment of Criminal Proceeds, intent and unlawful gain in embezzlement, and the relationship between offenses."

Meanwhile, the 'Lee Yong-ho Gate' is a representative power-type corruption case in the early 2000s where Lee, backed by influential figures in politics and government, committed financial crimes such as stock price manipulation by promoting a treasure ship salvage project.

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