Yonhap News Reports Eulji Foundation Chairpersons Park Jun-young and Hong Seong-hee Couple Accused of Breach of Trust

Hospital debt ratio reaches 123%, donates 3 billion KRW worth of Yonhap News TV shares to Eulji Hakwon
"Clearly a breach of duty causing hospital losses by evading Medical Law to seize management rights"

The national news agency Yonhap News reported on the 22nd that Park Jun-young (64), chairman of the Eulji Foundation and chairman of the Eulji Academy school corporation, along with his wife Hong Sung-hee (59), chairwoman of Eulji Hospital, have been reported to the prosecution on charges of breach of trust. The essence of the accusation is that to acquire management rights of Yonhap News TV, Eulji Hospital caused damage to the hospital by donating 600,000 shares of Yonhap News TV stock worth approximately 3 billion KRW, which it held, to Eulji Academy free of charge.

On the same day, Yonhap News submitted a complaint to the Seoul Central District Prosecutors' Office against Chairman Park and Chairwoman Hong on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. On August 30, Park and Hong signed a contract to donate 600,000 shares of Yonhap News TV stock worth about 3 billion KRW, held by Eulji Hospital, to Eulji Academy free of charge and transferred the shares.

In the complaint, Yonhap News stated, "Chairman Park and others, during the process of preparing a hostile merger and acquisition (M&A) to acquire management rights of Yonhap News TV, learned that under the Medical Service Act, Eulji Hospital could not participate in the management of Yonhap News TV. To circumvent this, they chose to donate the shares free of charge. Despite having a duty to manage and preserve the property to prevent financial loss due to the share donation, they conspired to donate the shares, causing property damage worth approximately 3 billion KRW to Eulji Hospital."

Yonhap News pointed out, "Despite Eulji Hospital's financial situation being insufficient, with liabilities amounting to 135.2 billion KRW and a debt ratio of 123% as of the end of last year, the share donation was made, which proves that the sole purpose of the donation was to acquire management rights of Yonhap News TV. Considering the purpose, scale, and effect of the donation, it is clear that this constitutes breach of trust."

Yonhap News emphasized, "News channels have a tremendous influence on public opinion, and efforts to realize the public responsibility, fairness, and public interest of broadcasting are very important. However, the accused have no understanding or experience regarding news channels. In particular, the above-mentioned share donation act is solely for pursuing private interests and causes adverse effects on society."

Yonhap News is the largest shareholder holding 29.891% of Yonhap News TV shares. The Eulji Foundation (including shares of Eulji Academy, Hospital, and related parties), which was the second-largest shareholder, recently increased its stake to 30.08% by purchasing additional shares of Yonhap News TV and applied for approval of the change of the largest investor to the Korea Communications Commission on the 13th of this month.

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