First Trial of Yuhwa Securities CEO on 'Tongjeong Maemae' Stalls: "Evidence Review Not Completed"

[Asia Economy Reporter Hwang Seoyul] The first trial of Yoon Kyung-rip, CEO of Yuhwa Securities (65), who is accused of purchasing treasury stocks through collusive trading to reduce inheritance tax, was held, but the procedure stalled as the defense attorney was unable to review the evidence records. Collusive trading refers to a transaction where the seller and buyer prearrange the stock trade, timing, quantity, and price, and execute the trade accordingly.

The Seoul Southern District Court Criminal Division 13 (Chief Judge Lee Sang-joo) held the first hearing on the 26th at 11 a.m. for Yoon and Yuhwa Securities, who are charged with violating the Capital Markets and Financial Investment Business Act. Both Yoon and Yuhwa Securities’ representatives were present in the courtroom. When asked by the court whether they wanted a jury trial, Yoon’s side responded, "We do not want it."

Yoon’s defense attorney stated regarding the prosecution’s charges, "We have not finished reviewing the evidence records." Typically, at the first trial, the prosecution reads the indictment containing the criminal facts, and then the defendant’s side expresses their opinion on whether they admit to the charges. Subsequently, a hearing is held on the charges denied by the defendant. Since Yoon’s side did not state their position on the charges that day, the court decided to continue the trial on March 21.

Earlier, Yoon was indicted on charges of acquiring about 800,000 shares (approximately 12 billion KRW) of the securities company owned by his father, the late founder Yoon Jang-seop, from November 2015 to June 2016 through 'collusive trading.' During this process, Yoon allegedly made a false disclosure that Yuhwa Securities would publicly purchase treasury stocks on the securities market and had employees prioritize purchasing the shares of the late Yoon.

The prosecution concluded that Yoon committed this crime to reduce the inheritance tax burden and strengthen control over Yuhwa Securities as the elderly late Yoon’s health deteriorated. When the largest shareholder of a listed company inherits shares from a related party, inheritance tax is imposed by adding a 30% premium to the stock price for two months.

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