Yoo Dae-kyun, eldest son of Yoo Byung-eun, wins appeal in 1.1 billion won tax dispute case

[Asia Economy Reporter Jo Sung-pil] Yoo Dae-kyun, the eldest son of the late Yoo Byung-eun, chairman of the Semo Group who was convicted and served time for embezzlement, won a lawsuit challenging the tax assessment on embezzled income.

The Seoul High Court Administrative Division 9 (Presiding Judge Kim Si-cheol) overturned the lower court ruling and ruled in favor of Yoo on the 28th in the comprehensive income tax assessment cancellation lawsuit filed by Yoo against the Seocho Tax Office chief. The court stated, "The refund paid by Yoo corresponds to a subsequent correction claim reason stipulated in the Framework Act on National Taxes, and the tax assessment that did not consider this is illegal."

Previously, Yoo was sentenced to two years in prison in 2015 for receiving about 6 billion KRW from Semo Group affiliates, including Cheonghaejin Marine and related companies, under the name of trademark royalties with no actual value. Subsequently, in a 2017 tax investigation, the Seocho Tax Office assessed comprehensive income tax of 1.13 billion KRW, arguing that the trademark royalties paid by Semo Group affiliates to Yoo were income.

Yoo filed an administrative lawsuit claiming that the tax authorities did not consider the fact that he had returned over 4 billion KRW to Cheonghaejin Marine and related companies during the 2015 criminal trial, but he lost in the first trial.