'Recruitment Corruption Allegations' Chairman Cho Yong-byeong's Final Trial Today... Will He Escape Legal Risks?

Conflicting Rulings in 1st and 2nd Trials... If Acquitted, 'Green Light' for 3rd Term Challenge

[Asia Economy Reporter Yu Je-hoon] The "day of destiny" has dawned for Cho Yong-byeong, Chairman of Shinhan Financial Group. Depending on the Supreme Court's ruling on allegations of recruitment corruption, it is expected that the decision on whether Chairman Cho will attempt a third term, with his current term expiring in March next year, will also be determined.

According to financial circles on the 30th, the Supreme Court's 2nd Division (Presiding Justice Lee Dong-won) will hold the final appeal hearing this morning for Chairman Cho, who was indicted on charges including obstruction of business and violation of the Equal Employment Opportunity Act.

Previously, Chairman Cho and others were brought to trial in October 2018 on charges of managing lists of external recommendation applicants and children of Shinhan Bank executives and department heads from the first half of 2013 to the second half of 2016, providing preferential treatment during the recruitment process.

The judgments of the first and second trials differed. The first trial found Chairman Cho guilty of obstructing recruitment work by informing the HR department of the application status and personal relationships of three specific applicants while serving as Shinhan Bank president, sentencing him to six months in prison with a two-year probation.

On the other hand, the second trial acquitted him. It was difficult to exclude reasonable doubt that two applicants suspected of involvement in the recruitment process might have passed through legitimate procedures, and regarding another applicant who appeared to have fraudulently passed the document screening, it was also difficult to acknowledge Chairman Cho's involvement.

The second trial court stated, "Although the defendant informed the HR manager at the time about an applicant's document screening application, and the recruitment team could reasonably be expected to consider the fact that 'the applicant was recommended by the president' during the evaluation of successful candidates by stage, such a statement by the defendant cannot be regarded as an instruction to pass the applicant."

Depending on the final ruling of the Supreme Court on this day, Chairman Cho's future course of action is also expected to change. If the Supreme Court overturns the second trial's decision and imposes a sentence of imprisonment or higher, he will lose his position under the "Act on the Corporate Governance of Financial Companies," which disqualifies executives for five years. Conversely, if the Supreme Court reaches the same conclusion as the second trial, Chairman Cho will be able to completely resolve the judicial risks that have persisted over the past four years and accelerate his bid for a third term.