Former CEO of Baekgwang Industry, Embezzling Over 20 Billion Won, Receives Suspended Sentence in Second Trial

Kim Seong-hoon, former CEO of Baekgwang Industry, the manufacturer of ‘Traffung’, who was sentenced to prison in the first trial for embezzling company funds worth around 20 billion won, received a reduced sentence of probation in the appellate trial.

Kim Seong-hoon, former CEO of Baekgwang Industry. [Photo by Yonhap News]

On the 20th, the Criminal Division 3 of the Seoul High Court (Presiding Judge Lee Chang-hyung) overturned the original verdict in the appellate trial of former CEO Kim, who was prosecuted for violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), and sentenced him to 2 years and 6 months in prison with a 3-year probation. Previously, Kim was sentenced to 2 years and 6 months in prison and was detained in court in the first trial.

Also, former accounting executive Park, who was tried together, was sentenced to 1 year in prison with 2 years probation, as in the first trial, and the company corporation was fined 30 million won.

The court stated, “Although the executives tried to dissuade him, embezzlement was routinely carried out using his position as the major shareholder and CEO, so severe punishment is necessary,” but added, “Since the damage has been fully compensated, and to prevent recurrence, a professional management CEO was appointed who pledged not to interfere in management at all, and considering that he was detained for about 11 months.”

Earlier, former CEO Kim was arrested and indicted in August last year on charges of privately using about 22.9 billion won of Baekgwang Industry’s funds, falsifying accounting books, and obstructing accounting audits. Investigations revealed that from 2011 to April last year, he withdrew about 16.9 billion won in cash from company funds to pay gift taxes for himself and his family, and used the corporate card to pay about 2 billion won for his family’s overseas travel expenses.

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