Prosecutors Indict Park Soo-hong's Older Brother for Embezzling Appearance Fees... Sister-in-Law Also Faces Trial

Embezzlement Amount Reaches 6.17 Billion KRW
Diverse Uses Including False Labor Cost Accounting and Real Estate Purchases
Additional Investigation After Arrest Reveals About 4 Billion KRW More
"Judged to Be Crime by Older Brother, Not Father"

This article is not related.

[Asia Economy Reporter Oh Gyumin] The prosecution has indicted the older brother of entertainer Park Suhong on charges of embezzling corporate funds while running Park's entertainment agency. His wife was also indicted without detention as an accomplice in part.

The Seoul Western District Prosecutors' Office announced on the 7th that it had indicted Park's older brother, Park, on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, and indicted his spouse, A, without detention as a partial accomplice.

They are accused of arbitrarily using corporate funds while operating the entertainment agency from 2011 until last year. According to the prosecution, the amount embezzled by them reached 6.17 billion KRW.

Specifically, they used company money for purposes including ▲ false accounting of labor costs amounting to 1.9 billion KRW ▲ illegal use of agency funds amounting to 1.17 billion KRW for real estate purchases ▲ unauthorized use of other agency funds amounting to 90 million KRW ▲ use of the agency's credit card for purposes other than intended amounting to 90 million KRW ▲ unauthorized withdrawal of 2.9 billion KRW from Park Suhong's personal account.

The prosecution stated, "Regarding the suspicion that they tried to evade punishment by using the family exemption system, the personal damage of 2.9 billion KRW to Park Suhong was judged to be the crime of Park."

Additionally, after Park's detention, the prosecution uncovered further criminal acts through additional investigations. The prosecution said, "Besides the 2.1 billion KRW stated in the arrest warrant, we identified approximately 4 billion KRW in additional damages, and the unpaid settlement amount according to the agreement was not recognized as a charge, so it was not prosecuted."

Regarding life insurance money, the prosecution judged, "Since the policyholder, beneficiary, and payer of insurance premiums are the same for each insurance contract, it is difficult to consider it as constituting a crime by itself." Regarding real estate, they added, "Except for the illegal use of 1.17 billion KRW of company funds for the purchase of some commercial properties, no other notable issues were found."

In April last year, Park Suhong filed a complaint against Park with the prosecution, and on the 8th of last month, the prosecution requested a pre-arrest warrant. Five days later, the Seoul Western District Court issued the warrant, citing concerns about evidence tampering and flight risk.

Subsequently, on the 4th, Park Suhong was assaulted by his father during a confrontation investigation at the prosecution and was transported to a hospital. At that time, Park Suhong's father and A were investigated as witnesses, and the father reportedly claimed that he, not Park, managed Park Suhong's bank accounts and assets.

In June last year, Park Suhong also filed a lawsuit seeking approximately 11.6 billion KRW in damages against Park and his wife.