Kim Jungkyu, Chairman of Tire Bank, Sentenced to 3 Years in Prison for 3.9 Billion Won Tax Evasion and Taken Into Custody

Kim Jungkyu, chairman of Tire Bank, who was put on trial for evading tens of billions of won in taxes by disguising store ownership under proxy names, was sentenced to a prison term and taken into custody in the courtroom in his appeal trial as well.

Kim Jungkyu, chairman of Tire Bank, is answering reporters' questions after attending the appeal trial for tax evasion held at Daejeon High Court on May 21. Photo by Yonhap News

On July 23, the 1st Criminal Division of the Daejeon High Court (Presiding Judge Park Jinhwan) sentenced Chairman Kim to three years in prison and a fine of 14.1 billion won in his appeal trial on charges including violations of the Act on the Aggravated Punishment of Specific Crimes, and ordered his immediate detention in court.

Previously, the first trial court had sentenced him to four years in prison and a fine of 10 billion won, but did not order his detention in court to ensure the defendant's right to defense.

Kim is accused of evading approximately 3.9 billion won in comprehensive income tax by disguising some Tire Bank outlets as if they were operated by independent store owners, thereby omitting cash sales or underreporting transaction details?a method known as "proxy name disguise."

The court stated, "By using the so-called proxy name disguise method, the defendant evaded comprehensive income tax and also evaded capital gains tax through stock accounts under borrowed names. Considering the method and nature of the crimes, as well as the defendant's social status, his culpability is serious. As chairman of Tire Bank, he committed these crimes over a long period of time in an organized manner, involving numerous executives and employees from a position of superior authority, which makes the nature of the offenses particularly grave."

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