'10 Years Imprisonment' Former Kumho Chairman Park Sam-gu and Both Parties Appeal First Trial Verdict

Former Chairman Park Sam-gu of Kumho Asiana Group. / Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Daehyun] Both former Kumho Asiana Group Chairman Park Sam-gu, who was sentenced to 10 years in prison and detained in court in the first trial on charges including unfair support, embezzlement, and breach of trust, and the prosecution have filed appeals.

According to the court on the 23rd, former Chairman Park submitted an appeal to the Seoul Central District Court Criminal Division 24 (Chief Judge Jo Yongrae), the first trial court of this case, the day before. On the same day, the prosecution also submitted an appeal to the court.

The court on the 17th found former Chairman Park guilty of most charges except some violations of the Fair Trade Act, including violations of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), and sentenced him to 10 years in prison. This is the same sentence the prosecution requested.

The court stated, "Large corporate groups must comply with legal order as economic agents and fulfill social responsibilities. This is the public's demand of the times," adding, "Using affiliate funds as if they were personal funds of the head of the group, the affiliate damages amount to hundreds of billions of won. The opportunity to block damages was practically lost during the concealment of the crime."

Former Chairman Park, who was released on bail and was on trial without detention, was detained in court as the bail was canceled following the prison sentence.

Former Chairman Park was prosecuted on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes for withdrawing a total of 330 billion won from four Kumho Group affiliates, including Kumho Terminal, at the end of December 2015, and using it as payment to acquire shares of Kumho Industrial (now Kumho Construction), the group's holding company.

He is also charged with breach of trust under the same act for selling 100% of Kumho Terminal shares held by Asiana Airlines to Kumho Enterprise at a low price of 270 billion won in April 2016, and with violating the Fair Trade Act for lending a total of 130.6 billion won at low interest without collateral from August 2016 to April 2017 to Kumho Enterprise, which was in financial difficulties, through nine Kumho Group affiliates including Kumho Industrial.

Additionally, former Chairman Park was indicted for selling the exclusive in-flight meal business rights of Asiana Airlines to Swiss Gate Group at a low price of 133.3 billion won. The prosecution viewed this transaction as a quid pro quo for Gate Group's interest-free acquisition of 160 billion won worth of Kumho Enterprise's new share subscription bonds (BW).

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