Court Sentences Ostem Finance Team Leader to 35 Years for Embezzling 221.5 Billion Won (Comprehensive)

Lee Mo, who is accused of embezzling 221.5 billion KRW of company funds from Osstem Implant, is being transferred from the Seoul Gangseo Police Station to the prosecution. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Hwang Seoyul] Lee Mo (46), who was prosecuted for embezzling more than 200 billion won of company funds while working as the head of the finance team at Osstem Implant, was sentenced to 35 years in prison in the first trial.

The Seoul Southern District Court Criminal Division 14 (Chief Judge Kim Donghyun) handed down this sentence on the 11th, along with a fine of 30 million won, to Lee, who was charged with embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. The court also ordered the confiscation of claims for return on real estate and resort memberships, and the seizure of approximately 115.1 billion won. The court recognized the wife, Park Mo, who participated in the crime, as guilty of violating the Act on the Regulation of Concealment of Criminal Proceeds and sentenced her to 3 years in prison. The sister-in-law and younger sister, who were also indicted on the same charges, were each sentenced to 2 years in prison with a 3-year probation. However, Park was not detained in court considering that her children are young and she has to support her mother-in-law.

Regarding Lee’s sentencing, the court stated, "The crime was committed boldly over a long period, which reflects the bad nature of the offense," and pointed out, "The concealment and storage of criminal proceeds in various forms made it difficult to recover damages and caused significant obstacles and costs to the legitimate exercise of state penal authority." Furthermore, the court added, "There are signs that the defendant calculated to secure assets despite punishment after the incident or to enjoy benefits by utilizing the assets after release," and "This was intended to prevent the enjoyment of criminal profits after release."

According to the court, Lee left traces suggesting he weighed the economic benefits of being declared missing after fleeing the crime versus voluntarily appearing to investigative authorities. He also compared the periods of actual imprisonment, missing person declaration, and statute of limitations expiration. The court judged this as evidence that the defendant sought ways for himself and his family to retain economic benefits from the embezzlement despite accepting a long prison sentence.

Regarding Park, the court stated, "Although the defendant claims she did not know the source of the assets was embezzlement, it is inappropriate as she had the awareness, intention, and plan to possess the assets herself." About the sister-in-law and younger sister, the court judged, "They likely found it difficult to refuse requests from Lee and Park." After the sentencing, these three broke down in tears outside the courtroom.

Earlier, Lee was arrested and indicted in January last year on charges of transferring 221.5 billion won in 15 installments from company accounts containing Osstem Implant funds to his own securities account from November 2020 to October the following year, and using it for stock investments. The prosecution had requested a life sentence for Lee at the sentencing hearing in December last year. Additionally, they requested 5 years in prison for Park and 3 years each for the sister-in-law and younger sister.