'Embezzlement and Breach of Trust' Chairman Lee Jung-geun of Booyoung Sentenced to 2 Years and 6 Months in Second Trial... Sent to Prison (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-yoon] Lee Joong-geun, chairman of Booyoung Group, who was sentenced to 5 years in prison in the first trial on charges of embezzlement and breach of trust involving about 430 billion won, received a reduced sentence of 2 years and 6 months in the appellate court. Immediately after the sentencing, Lee was detained in court as his bail was revoked.

The Criminal Division 1 of the Seoul High Court (Presiding Judges Jeong Jun-young, Kim Se-jong, Song Young-seung) on the 22nd sentenced Lee to 2 years and 6 months in prison and a fine of 100 million won in the appellate trial for violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement) and other charges.

The court stated, "Considering the scale of damage caused by the crime, and the fact that the defendant has a prior record of being detained and punished for embezzlement of company funds but committed the same crime again, a prison sentence is inevitable."

It further explained the sentencing rationale, saying, "The defendant is effectively the sole shareholder and largest shareholder of Booyoung Group, as well as the chairman of the company, who used his absolute authority to collude with executives and employees to embezzle affiliate company funds in various ways, causing damage to the company."

Although Lee received a reduced sentence in the second trial, he was immediately detained in court due to the prison sentence. Previously, the first trial court sentenced Lee to 5 years in prison and a fine of 100 million won but did not detain him in court to guarantee his right to defense.

The prosecution, during the previous appellate trial's closing arguments, stated, "(Lee's) health condition is not so poor as to make imprisonment impossible," and requested a prison sentence of 12 years, the same as the original sentence, asking the court to convict some charges that were acquitted in the first trial.

At that time, Lee appealed to the court for leniency, saying, "I am now old and physically uncomfortable, and I am not sure how much longer I can work, but I intend to reform the compliance audit system to prevent such incidents from recurring, build a company that lasts long, and retire. I hope to be given a chance to finally settle the company I have built throughout my life."

Lee was tried on 12 charges including embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes amounting to 430 billion won, tax evasion, violation of the Fair Trade Act, bid rigging, and violation of the Rental Housing Act. The amounts recognized in the first trial were 36.65 billion won for embezzlement and 15.69 billion won for breach of trust, among others.