Supreme Court Confirms Not Guilty Verdict for SPC Chairman on Embezzlement Charges

Supreme Court building. [Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The Supreme Court has confirmed the acquittal of Heo Young-in, chairman of SPC Group, who was tried on charges of causing damage to the company by transferring the trademark rights of 'Paris Croissant' to his wife.

The Supreme Court's 2nd Division (Presiding Justice Kim Sang-hwan) upheld the lower court's verdict of not guilty in the appeal trial of Chairman Heo on the morning of the 9th. The court stated, "There is no error in the lower court's judgment that there was no intent to breach trust, nor any violation of the rules of logic and experience that would exceed the limits of free evaluation of evidence, or any misinterpretation of the law regarding breach of trust."

Chairman Heo was accused of causing damage to the company by transferring all the trademark rights of 'Paris Croissant,' which were owned half by the company and half by his wife Lee, to Lee in 2012, and then making the company pay 21.3 billion KRW in trademark usage fees until 2015. The Paris Croissant trademark rights were originally owned by Lee, but in 2002, the company and Lee jointly owned 50% each. Later, in 2012, the company transferred its shares back to Lee and paid her 0.125% of total sales as trademark usage fees, according to investigations.

The first trial recognized only the charge of breach of trust in the course of duty against Heo as guilty and acquitted him of other charges, sentencing him to one year in prison with a two-year probation. The second trial ruled not guilty on the breach of trust charge as well, judging that "the defendant had no intent."