Co-Partner Who Embezzled 2.7 Billion KRW from Heo Kyung-hwan's Company 'Heodak' Sentenced to 2 Years in Prison

1st Trial "Significant Amount of Damage" 3 Years 6 Months Imprisonment → 2nd Trial "Partial Repayment" 2 Years Imprisonment

[Asia Economy Reporter Heo Kyung-jun] A business partner who was tried for embezzling tens of billions of won from the company funds of ‘Heodak’ (formerly Eoltteol-gyeol), a food distribution company operated by comedian Heo Kyung-hwan, has been sentenced to prison.

The Supreme Court’s 1st Division (Presiding Justice No Tae-ak) announced on the 10th that it upheld the original sentence of two years in prison for Yang Mo (42), who was indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), forgery of securities, forgery of private documents, and fraud.

Yang was prosecuted on charges of embezzling a total of approximately 2.736 billion won from Heodak by serving as an auditor from July 2010 to June 2014, during which he actually managed the company and kept the corporate bankbook and seal.

It was investigated that Yang took advantage of Heo’s de facto delegation of company operations to him, frequently withdrawing company funds and transferring them to accounts of other companies he operated, thereby committing embezzlement.

Additionally, Yang is accused of using Heo’s name and seal to enter into a liquor supply contract and issuing promissory notes when the financial situation of the company he operated became difficult.

The first trial court sentenced him to three years and six months in prison, stating, "The crime was committed in the process of managing and operating the accounting of Heodak and other companies without distinguishing them and mixing them arbitrarily, and the embezzled amount exceeds 2.7 billion won, with the remaining damage amount also considered substantial."

The appellate court upheld the first trial’s judgment but reduced the sentence to two years in prison, considering that Yang deposited 300 million won with the court for damage compensation. However, Yang, who was on bail during the trial, was detained in court following the second trial’s verdict.

The Supreme Court also agreed with the second trial’s judgment. Yang’s fine of 10 million won, imposed for drunk driving in the first trial, was also upheld.