Court Orders Former Heroes Vice President to Return Embezzled Funds to Team

Namgung Jonghwan, former Vice President of Seoul Heroes (currently Kiwoom Heroes)

[Asia Economy Reporter Seongpil Cho] A court ruling has been issued stating that Namgung Jonghwan, former vice president of the Seoul Heroes (now Kiwoom Heroes), who was convicted of embezzling several hundred million won of the club's funds for personal use, must pay part of the embezzled amount back to the club.

The Seoul Central District Court Civil Division 30 (Presiding Judge Han Seongsu) ruled partially in favor of the Seoul Heroes in a damages lawsuit filed against former Vice President Namgung. The court ordered, "Namgung must pay approximately 469 million won to the Seoul Heroes."

Previously, Namgung was convicted by the Supreme Court in December 2018 to three years in prison with a four-year probation for conspiring with former Heroes CEO Lee Jangseok during his tenure at the Heroes to violate incentive payment standards and procedures without resolutions from the board of directors and shareholders' meeting, paying himself and CEO Lee 700 million won and 1 billion won respectively under the name of advertising incentives. During the criminal trial in 2017, the club filed a lawsuit demanding payment of part of the damages, approximately 469 million won, based on a written pledge by Namgung stating, "If the court issues a guilty verdict, I will reimburse the company for the advertising incentive amounts received."

Namgung's side argued, "The pledge does not specify the payment amount, so there is no obligation to repay," but the court did not accept this. The court stated, "The amount of damages was specified as 700 million won in the public announcement of the criminal case, confirming the payment amount, and the parties responsible for the payment and the recipient are clear," adding, "Unless there are special circumstances, Namgung has the obligation to pay the compensation."