"30-Year-Old Sentenced to Prison for Defrauding Business Partner of Hundreds of Millions by Falsely Claiming to Supply Jewelry for China's Guanggun Festival"

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] A businessman who deceived a partner by claiming he would supply jewelry to a well-known domestic home shopping company and embezzled several hundred million won was sentenced to prison.

According to the legal community on the 25th, the Criminal Division 12 of the Seoul Western District Court (Chief Judge An Dong-beom) sentenced Lee (38), who was indicted on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, to three years in prison.

Lee was the actual operator of a jewelry manufacturing and sales company. He is accused of receiving a total of 580 million won from the victim, who was his business partner, over seven occasions from May to October 2018.

Lee promised the victim that he would purchase and manufacture jewelry with the borrowed money and supply it to A Home Shopping, operated by a major domestic corporation, and that the profits would be settled and split evenly. Around May 2018, Lee demanded money from the victim, claiming that funds were needed for jewelry to be supplied to A Home Shopping for the Guanggunje (November 11) event.

The company Lee operated had never been selected as a supplier for A Home Shopping at the Guanggunje event. Investigations revealed that Lee lied to secure the profits he arbitrarily calculated in advance, anticipating that the victim would not properly settle the profits even if there were earnings from the jewelry supply.

The court pointed out, "Considering the serious nature of the crime, the substantial amount embezzled, and the fact that the damage has not been restored, a severe punishment corresponding to the defendant's culpability is inevitable." However, it also stated the sentencing reasons, "Taking into account that the defendant fully admitted to the crime and is showing remorse, and that there is no prior record of similar offenses."

The court decided not to detain Lee in court, offering him an opportunity to compensate for the damages. Lee appealed the verdict.