[Asia Economy Reporter Jeong Dong-hoon] The court sentenced Jo Yun-ho (52), former CEO of Skin Food, to five years in prison on charges of breach of trust.
The Criminal Division 12 of the Seoul Western District Court (Presiding Judge Lee Jeong-min) on the 28th sentenced former CEO Jo to five years in prison for breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, after embezzling approximately 12 billion KRW in profits earned from the company's online shopping mall.
From 2006 to 2018, former CEO Jo embezzled 12 billion KRW by paying the sales proceeds from the company's online shopping mall to a private business he separately established. It was revealed that some of the funds were used for highly personal expenses, such as purchasing and maintaining horses used by his nephew.
The court pointed out, "The defendant caused financial damage by having a subsidiary pay for horse maintenance and medical expenses that were personally purchased, and even during Skin Food's rehabilitation process, he received online sales proceeds into his personal account," adding, "The financial damage suffered by Skin Food and its subsidiaries due to the defendant's crimes was linked to losses for franchise business operators."
The court also rejected Mr. Jo's claim that "the individual took the online shopping mall profits as a reward for founding Skin Food."
Earlier, the prosecution requested a seven-year prison sentence during the final hearing.
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