Former National University Professor Who Embezzled 400 Million Won in Graduate Student Salaries and Scholarships Receives Reduced Sentence in Second Trial

A former professor at a national university who embezzled about 400 million KRW in wages, scholarships, and research allowances meant for graduate students was given a reduced fine sentence in the second trial.

The Chuncheon District Court Criminal Division 1 (Presiding Judge Shim Hyun-geun) overturned the original sentence of one year imprisonment with two years probation and instead sentenced Mr. A, a man in his 50s charged with fraud, to a fine of 10 million KRW, according to Yonhap News on the 7th. Mr. A, a former professor at a national university, was prosecuted for embezzling approximately 385 million KRW over 656 instances from June 2015 to March 2021, involving wages, research scholarships, and research allowances for 18 student researchers.

Chuncheon District Court Exterior

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Investigations revealed that Mr. A, while conducting national research and development projects through the Industry-Academic Cooperation Foundation, managed bank accounts and cards registered under the names of students registered as researchers, deceiving the foundation into believing that wages were being paid to the students. As the principal investigator, Mr. A applied for wage payments directly to the foundation 656 times, recommended scholarship recipients, and continued the fraud by requesting wage payments through other principal investigators.

The Chuncheon District Court, which handled the first trial, stated, "There is no evidence that the defendant used the money for personal gain, and he spent a significant amount on tuition and living expenses for graduate students as well as on publication fees," but also noted, "He misused student wages and did not properly document the expenditures," and thus sentenced him to imprisonment with probation. Mr. A appealed, claiming the sentence was too harsh and unfair.

The appellate court explained, "It appears that the defendant never properly informed the students how much was paid as wages or how the wages were managed. Even if there was a practice of jointly managing student wages, this is an unfavorable circumstance for the defendant." The court further emphasized, "To prevent professors' improper use and to ensure that students' research labor is compensated fairly and justly, joint management of wages where professors exercise discretionary control must be strictly prohibited."

However, the court decided to reduce the sentence, considering that Mr. A admitted to the crime and showed remorse during the appeal, and that some student researchers affiliated with his lab petitioned for leniency. The court also took into account that Mr. A paid back about 180 million KRW as restitution following recovery orders from the Ministry of Science and Technology and the Ministry of Education, and that he deposited approximately 190 million KRW and 11 million KRW in the first and second trials respectively to restore damages.

According to the Education Officials Act, if a national university professor convicted of fraud during their tenure receives a fine of 3 million KRW or more and the sentence is finalized, they are automatically retired without a separate disciplinary committee. It is reported that Mr. A left his teaching position in September following the first trial verdict.

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