'10-Year Prison Sentence in First Trial' Park Sam-gu Released on Bail During Appeal Trial

[Asia Economy Reporter Kim Daehyun] Park Sam-gu, former chairman of Kumho Asiana Group, who was sentenced to 10 years in prison and detained in the first trial on charges of unfair support, embezzlement, and breach of trust, was released on bail during the appeal process.

Former Kumho Asiana Chairman Park Sam-gu is attending the trial on allegations of unfair support to affiliates held at the Seoul Central District Court in Seocho-gu, Seoul, on January 24 last year. Photo by Kang Jin-hyung aymsdream@

According to the legal community on the 31st, the Seoul High Court Criminal Division 8 (Presiding Judges Bae Hyung-won, Lee Eui-young, Bae Sang-won) accepted Park's bail request on the 27th. Park had submitted a bail petition to the appellate court on the 18th, requesting to be tried without detention. Two former executives of the group’s management strategy office, who were also sentenced to imprisonment in the first trial, were also released.

Previously, Park was prosecuted on charges of embezzlement under the Specific Economic Crimes Act for withdrawing a total of 330 billion KRW from four Kumho Group affiliates, including Kumho Terminal, at the end of December 2015, and using the funds to purchase shares of Kumho Industrial (now Kumho Construction), the group's holding company.

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

Additionally, 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 KRW. The prosecution believes that this transaction was made in exchange for Gate Group’s interest-free acquisition of 160 billion KRW worth of Kumho Enterprise’s new share subscription bonds (BW).

In the first trial, most charges except some violations of the Fair Trade Act were found guilty, and Park was sentenced to 10 years in prison. This is the same sentence the prosecution requested.

It was 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 assets, the damage to affiliates amounts to hundreds of billions of KRW. The opportunity to contain the damage was practically lost during the concealment of the crime."

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