[Asia Economy Reporter Kim Hyung-min] Lee Moon-ho, former co-CEO of Burning Sun, who was sentenced to prison for drug use, has been additionally sentenced to a suspended prison term for issuing false tax invoices worth several hundred million won.
On the 24th, Judge Lee Won-jung of the Criminal Division 19 at the Seoul Central District Court sentenced Lee to 8 months in prison with a 2-year suspension for violating the Tax Crime Punishment Act. Chairman Lee of Jeonwon Industry, who was also indicted, was sentenced to 6 months in prison with a 2-year suspension, and Burning Sun Entertainment and Jeonwon Industry Co., Ltd. were fined 10 million won and 5 million won respectively.
The court stated, "They created false lease contracts to recover investment funds, paid rent, and paid false brand usage fees and consulting costs, thereby obstructing the receipt of each tax invoice and undermining sound tax payment."
Lee is accused of generating fictitious expenses under the name of consulting after Burning Sun failed to make a profit in 2018, recovering investment funds, and inflating lease service amounts to receive false tax invoices.
Previously, Lee was indicted for using drugs including ecstasy and ketamine about ten times at clubs in Gangnam, Seoul, between 2018 and 2019 (violation of the Narcotics Control Act), and his one-year prison sentence was confirmed by the Supreme Court in January 2020. He was also indicted for neglecting to prevent the employment of minors as club security guards and was sentenced to 6 months in prison with a 1-year suspension in the first trial last November.
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