[Asia Economy Reporter Kim Daehyun] The first trial of Choi Sun-won, chairman of SK Networks, who was arrested and indicted on charges including embezzlement and breach of trust amounting to around 220 billion KRW, will be held on the 22nd.
On the morning of the 12th, the Seoul Central District Court Criminal Division 23 (Presiding Judge Yoo Young-geun) held the second pretrial hearing for Chairman Choi, who was arrested and indicted on charges including embezzlement, breach of trust, fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, violations of the Capital Markets Act, the Real Name Financial Transactions and Confidentiality Act, and the Foreign Exchange Transactions Act, and finalized the future trial schedule.
The court decided to prioritize hearing on two of the six charges against Chairman Choi: ▲ the charge of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes for lending 15.5 billion KRW from SK Telesys to his personal company A, which was developing a private golf course project, without collateral in April 2009, and ▲ the charge of embezzlement under the same act for withdrawing 16.4 billion KRW from SK Telesys funds without accounting in September 2012 and using it for his personal paid-in capital increase related to SK Telesys.
At the first trial session on the 22nd, the court plans to summon three witnesses, including former SK Telesys CEO Park, to conduct witness examinations. The court stated, "By mid-August, witness examinations for 87 people must be completed, which means about four witnesses need to be examined every Thursday," and added that trial sessions could be expanded to twice a week if necessary. However, if Chairman Choi’s side agrees to some evidence, the actual number of witnesses to be examined is expected to decrease.
The court ordered the prosecution to complete proof within Chairman Choi’s detention period, which is scheduled to expire on September 4. At the same time, it cautioned, "At the first testimony on the 22nd, the defense can make any claims, but the prosecution must ensure not to violate the principle of indictment specificity," urging that information outside the charges should not be disclosed prematurely.
At the previous first pretrial hearing, the court also repeatedly emphasized its intention to conclude the trial before the detention period expires. At that time, Presiding Judge Yoo Young-geun said, "Since this is a detention case, it is classified as a major case requiring immediate processing," and added, "The court’s goal is to handle the case within the detention period."
Meanwhile, Chairman Choi did not appear in court on this day. The pretrial hearing is a procedure before the formal trial where the court listens to the prosecution and defense’s plans for evidence and selects necessary evidence and witnesses, so the defendant is not obligated to attend.
Chairman Choi is accused of embezzling and breaching trust of 223.5 billion KRW from six affiliates including SK Networks, SKC, and SK Telesys under the pretexts of pursuing a private golf course project, paying false salaries to family and relatives, paying for personal paid-in capital increases, and supporting insolvent affiliates.
He is also charged with deceiving the New Growth Engine Fund into acquiring 27.5 billion KRW worth of bonds with warrants (BW) by pretending to participate in a paid-in capital increase with his personal funds during SK Telesys’s issuance of BW in October 2012.
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