'Circumventing Inheritance Tax through Sham Transactions' - Yu Hwa Securities CEO Appeals First Trial Verdict

Prosecution Also Files Appeal Claiming "Unfair Sentencing"
CEO Yoon Kyung-rip Sentenced to 1 Year and 6 Months in First Trial

Yoon Kyung-rip, CEO of Yuhwa Securities (65), who acquired stocks owned by his father through a collusive trading scheme to avoid inheritance tax burden, has appealed the first trial verdict.

According to the legal community on the 14th, Yoon's side submitted an appeal to the Seoul Southern District Court Criminal Division 13 (Chief Judge Myung Jae-kwon) on the 10th. The prosecution also filed an appeal on the same day, citing inappropriate sentencing.

Yoon was sentenced to 1 year and 6 months in prison and was taken into custody at the first trial verdict on the 8th. He was also ordered to pay a fine of 500 million won. Yuhwa Securities as a corporation was also fined 500 million won.

Yoon was indicted on December 26 last year on charges of acquiring 800,000 shares (about 12 billion won) of securities company stocks owned by his father, the honorary chairman and founder Yoon Jang-seop, through collusive trading from November 2015 to June 2016 to reduce inheritance tax burden and strengthen control over Yuhwa Securities. In this process, Yoon is also accused of falsely disclosing that Yuhwa Securities would publicly repurchase its own shares in the securities market and having employees prioritize purchasing the honorary chairman Yoon's shares.

At the first trial sentencing, the court stated the reason for sentencing, saying, "The crime is very serious as it undermines the trust of market participants essential for forming a sound stock market," and "Moreover, as the CEO of a securities company, he was well aware that the crime infringes on the fairness of the securities market and investors' trust, yet he violated professional ethics and committed the crime."

Yoon said, "I apologize for not knowing the law and admit my wrongdoing," and "I am taking medication due to health issues, so I hope this will be taken into consideration and that I will be spared from detention," but the first trial court ordered Yoon to be taken into custody.

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