[Asia Economy Reporter Choi Dae-yeol] The prosecution has requested a four-year prison sentence for Cho Hyun-jung, chairman of Hyosung, who was tried on charges of embezzlement and breach of trust. Previously, the court sentenced him to two years in prison with a three-year probation, acquitting him of some breach of trust charges in the first trial with the same sentence.
On the 23rd, during the appeal trial of Chairman Cho held by the Criminal Division 6 of the Seoul High Court (Presiding Judges Oh Seok-jun, Lee Jeong-hwan, Jeong Su-jin), the prosecution requested the court to sentence him to four years in prison. The prosecution argued, "This case involves crimes committed as Cho Hyun-jung shifted huge losses onto affiliated companies," adding, "Since control over the Hyosung Group is still maintained, there is a risk of reoffending."
Regarding the first trial court's judgment that "allocating new shares at a price higher than the market price is not considered breach of trust," the prosecution countered, "From the perspective of ordinary people, it would seem like a sophistry claiming no intent while stabbing with a knife." Chairman Cho's defense lawyer argued, "This case happened over ten years ago and practically caused no damage," and added, "It would not be an exaggeration to call all of these matters related to new business."
Chairman Cho was prosecuted on charges including causing a loss of 17.9 billion won by having his personal company, where he is the major shareholder, conduct a paid-in capital reduction and repurchase of treasury stocks in July 2013 to raise funds for stock repurchase. He was also accused of having Hyosung's 'Art Fund' purchase artworks he bought with personal funds at inflated prices and falsely hiring acquaintances at group affiliates. The first trial court recognized substantial guilt for embezzlement charges such as false salary payments but acquitted him of breach of trust charges.
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