'Eastar Jet Embezzlement and Breach of Trust' Lee Sang-jik Sentenced to 6 Years in Prison on Appeal

Former Assemblyman Sang-jik Lee [Image source=Yonhap News]

[Asia Economy Reporter Heo Kyung-jun] Former lawmaker Lee Sang-jik, who was indicted on charges of breach of trust and embezzlement related to Eastar Jet, was sentenced to a heavy prison term again in the appellate trial.

The Criminal Division 1 of the Jeonju Branch of the Gwangju High Court (Chief Judge Baek Kang-jin) on the 7th sentenced former lawmaker Lee, who was indicted for violating the Act on the Aggravated Punishment of Specific Economic Crimes, to six years in prison, the same as the original sentence.

The court stated, "The defendant, as the CEO of Eastar Jet, abandoned his basic responsibilities and roles and used his powerful authority within the group to gain private benefits," adding, "Considering these points, a severe punishment corresponding to the culpability is necessary."

Lee was indicted for selling 5,242,000 shares of Eastar Jet stock worth approximately 54.4 billion KRW to Eastar Holdings, owned by his children, at a low price of about 10.5 billion KRW from November to December 2015, causing a loss of 43.9 billion KRW to Eastar Jet.

He is also accused of embezzling 5.36 billion KRW from Eastar Jet and its affiliates, which he effectively owned from July 2013 to May 2019, and using the funds for his daughter's luxury car deposit, rental fees, insurance premiums, and overseas luxury shopping.

In addition, from April 2016 to June 2019, he is charged with arbitrarily adjusting the value of bonds held by Eastar Jet affiliates upward and downward and causing a loss of 5.6 billion KRW to the affiliates by repaying debts early.

Earlier, the first trial also pointed out, "The defendant, as the head who effectively controlled Eastar Jet and its affiliates, privatized the company but denies the crime and shifts the responsibility to subordinate employees," and sentenced him to six years in prison.

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