'Capital Fund Evasion' MBN Executives... Suspended Sentences and Fines Upheld in Second Trial

[Asia Economy Reporter Baek Kyunghwan] Executives of Maeil Broadcasting Network (MBN) who were indicted for illegally covering capital during the launch of a comprehensive programming channel were sentenced to suspended prison terms again in the appellate trial.

On the 11th, the 8-3 Criminal Appeals Division of the Seoul Central District Court (Presiding Judges Jang Yoonseon, Kim Yeyoung, Jang Seonghak) upheld the first trial verdict against MBN corporation and its executives, who were charged with violating the Capital Markets Act and other offenses.

Lee Yoo-sang, Vice Chairman of Maekyung Media Group, is accused of falsifying the financial statements for Q3 2012 and year-end statements from 2012 to 2018 during the process of a paid-in capital increase to cover the minimum capital of 300 billion won for the launch of the comprehensive programming channel in 2011.

In the first trial, MBN corporation was fined 200 million won, and Lee was sentenced to two years in prison with a three-year suspended sentence. Additionally, Ryu Hogil, CEO of MBN, received a sentence of one year and six months in prison with a two-year suspended sentence, and Jang Seungjun, CEO of Maeil Business Newspaper, was fined 15 million won.

On this day, the court stated, "The original judgment appears to have comprehensively considered circumstances favorable to the defendants and cannot be seen as exceeding the reasonable scope of discretion."