[Asia Economy Reporter Donghoon Jeong] The first trial of Cho Yoon-ho (52), former CEO of Skin Food, who was arrested and indicted for embezzling profits from the company’s online shopping mall, was held. Franchisees who appeared in court expressed outrage at his criminal activities.
The Criminal Division 12 of the Seoul Western District Court (Presiding Judge Jeongmin Lee) held the first hearing on the 21st for Cho, who was arrested and indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust).
According to the prosecution, Cho is accused of directing approximately 11.3 billion KRW from the company’s online shopping mall sales between March 2006 and December 2018 to be paid into his personal account.
He is also accused of having a subsidiary of Skin Food pay about 900 million KRW in total for the purchase, maintenance, and medical expenses of two horses bought for his nephew from 2011 until November 2016.
Regarding this, Cho’s defense acknowledged the breach of trust related to the horses, stating, "We admit to the facts concerning the horses," and added, "There are legal points to review regarding the shopping mall charges, so if given time, we will organize and submit our position by the next hearing."
Skin Food, founded by Cho in 2004, is a representative cosmetics road shop brand that established a store network mainly in areas with high foot traffic. It led the 'K-Beauty' wave by expanding into overseas markets such as China, Japan, and the United States. However, due to failures in local investments, the company entered rehabilitation procedures in October 2018 and faced difficulties such as changes in company administrators and legal disputes with franchisees even after filing for rehabilitation.
At the trial, affected franchisees also appeared in the gallery. During the proceedings, one franchisee shouted insults at Cho, prompting the court to issue a warning.
Seo, a franchisee who submitted a petition demanding severe punishment for Cho, expressed frustration, saying, "I ran the store for over four years and could only rest twice a month. While raising three children alone, the company made a decision like a bolt from the blue when I needed money the most. I am still paying off loans."
Cho’s next trial date is scheduled for the morning of the 11th of next month.
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