'School Budget Embezzlement of Several Hundred Million Won' Lee Gyutae, Ilgwang Group Chairman, Indicted Without Detention

[Asia Economy Reporter Yoo Byung-don] Lee Gyu-tae, chairman of Ilgwang Group and known as the 'first-generation arms broker,' has been brought to trial on charges of embezzling several hundred million won from the school budget of the Ilgwang Foundation.

The Seoul Northern District Prosecutors' Office announced on the 15th that on the 15th of last month, Chairman Lee and 10 officials from the Ilgwang Foundation were indicted without detention on charges including embezzlement.

According to the prosecution, Chairman Lee, who faced long-term trials on embezzlement charges, experienced financial difficulties due to legal fees and fines exceeding 1 billion won. He is accused of embezzling 88 million won in seven installments from 2015 to 2018 from Uchon Early Childhood Academy, a subsidiary of the Ilgwang Foundation where he serves as chairman.

Additionally, upon learning that the carryover balance of the school fund at Uchon Elementary School, also under the Ilgwang Foundation, amounted to 5 billion won, he is accused of embezzling several hundred million won around 2019 under the pretext of implementing a 'Smart School Environment Construction Project.' He is also charged with coercion for attempting to impose personnel disadvantages on staff members who opposed this.

Previously, in 2018, the Supreme Court sentenced him to 3 years and 10 months in prison and a fine of 1.4 billion won for charges including embezzlement of Ilgwang Group affiliates and Uchon Elementary School funds, bribery, and tax evasion.

This case has been assigned to Criminal Division 12, presided over by Judge Lee Dong-wook, at the Seoul Northern District Court. The trial date has not yet been set.

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