[Asia Economy Reporter Lee Jung-yoon] Kim Song-ho (66), chairman of the Korea Federation of Small and Medium Business Owners, who was prosecuted on charges of pocketing several hundred million won under the pretext of investment funds, was sentenced to imprisonment in the first trial.
The 12th Criminal Division of the Seoul Eastern District Court (Chief Judge Min Cheol-gi) announced on the 20th that it sentenced Chairman Kim, who was indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), to two years in prison and ordered his detention in court.
Chairman Kim was charged with receiving a total of 800 million won from a company representative, Mr. A, in 2015 under the pretext of investment funds for a parking lot site development project and other projects. The projects promoted by Chairman Kim were never actually realized.
The court stated, "Chairman Kim deceived Mr. A and received a large sum of money despite having no confidence that the business would proceed as originally agreed or that he could repay the money, even though he received money under the name of investment funds or operating expenses," adding, "The nature of the crime cannot be considered light."
Chairman Kim has held the position of chairman of the Korea Federation of Small and Medium Business Owners since 2015.
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