Art Concealment by Lee Hye-kyung, Prison Sentence Upheld in Second Trial

2 Years Imprisonment as in the First Trial
Suspended Sentence for Co-defendant Hong Song-won

Former Dongyang Group Vice Chairman Lee Hye-kyung, who was indicted on charges of embezzling high-priced artworks just before the court was about to proceed with the provisional seizure procedure following the Dongyang incident, is heading to the courtroom as she attends the appellate trial sentencing hearing held at the Seoul High Court in Seocho-gu, Seoul on the 25th.
[Image source=Yonhap News]

[Asia Economy Reporter Choi Seok-jin] Lee Hye-kyung, former vice chairman of Dongyang Group (68), who was indicted for embezzling artworks owned by group executives just before provisional seizure, was sentenced to prison again in the appellate court following the first trial.

The Criminal Division 1 of the Seoul High Court (Presiding Judge Jeong Jun-young, Judges Song Young-seung and Kang Sang-wook) sentenced former Vice Chairman Lee to two years in prison on the charge of evading compulsory execution, the same as in the first trial, on the 25th. The court sentenced Hong Song-won, CEO of Seomi Gallery (67), who was indicted together, to one year and six months in prison with a three-year probation and a fine of 2 billion KRW for violating the Act on the Aggravated Punishment of Specific Crimes (tax evasion), and one year and six months in prison for evading compulsory execution. However, the court did not detain either of them in custody.

Lee was indicted on charges of embezzling and partially selling artworks worth tens of billions of KRW owned by group executives from November 2013 to March of the following year, just before the court was about to proceed with provisional seizure after the Dongyang Group incident. The court criticized Lee, stating, "Starting the day after she apologized to the victims at the 2013 National Assembly audit and said she would make efforts to restore the damage, she began to remove and conceal high-priced artworks," and added, "An employee of Dongyang Securities even took their own life out of guilt towards investors." Regarding CEO Hong, the court reduced the sentence to probation considering that the evaded tax amount was fully paid.