Embezzlement of 700 Million Won Under the Pretext of 'Business'... 4-Year Prison Sentence for Operator of Automobile-Related Company

The operator of an automobile production automation line manufacturing company was sentenced to imprisonment for embezzling approximately 700 million KRW in money and goods under the pretext of conducting automobile-related business.

According to the legal community on the 22nd, Judge Kim Dong-jin of the Criminal Division 4 at Seoul Southern District Court sentenced Go (68) to four years in prison on the 19th on charges of fraud. Go is the operator of company A, which manufactures and sells automobile production automation lines.

Go was indicted on charges of embezzling a total of approximately 706.53 million KRW in money and goods from victims between July 2018 and December 2019 under the pretext of conducting automobile-related business.

In August 2019, Go met with victim B in Bucheon, Gyeonggi Province, and said, "It has been agreed to receive a contract for dismantling the body line at a local factory of an automobile manufacturer through an executive of company C, which took over the local factory," and "To secure the dismantling contract, I need to give a bribe of 50 million KRW to the executive, and if you pay 50 million KRW, I will subcontract the dismantling work, recover the funds in two months, and later distribute at least 500 to 600 million KRW in profits generated there." B was deceived by this and handed over 50 million KRW to A.

However, neither Go nor company A had agreed to or planned to receive the dismantling contract for the local factory body line, and they had no intention of using the money received from B as lobbying funds related to the contract.

In September of the same year, Go claimed "more lobbying funds are needed," and in November, "a contract was signed, but a warehouse rental fee is needed to store expensive parts and equipment before selling them as used," receiving 190 million KRW and 30 million KRW respectively, embezzling a total of 270 million KRW from B.

Additionally, in July 2018, Go deceived D, a director of a company located in Ansan, Gyeonggi Province, by saying, "If you supply automation line equipment parts to four companies, after deducting a 6% margin, payment will be made on the 25th two months after the month of supply," and embezzled goods worth a total of 381.53 million KRW. At that time, company A was in significant debt and had unpaid taxes amounting to 200 million KRW.

In December 2019, Go is also accused of embezzling 55 million KRW from another victim, E, with whom he had entered into a joint business agreement to supply parts to an automobile manufacturer.

The court stated the sentencing reasons, saying, "The amount of damage is large, and (A) did not take meaningful measures to reach an agreement or restore damages with the victims," and "Considering that during the several years of trial related to D’s case, he claimed no intent to embezzle and submitted a false transaction confirmation letter to the investigative agency." The fact that many victims petitioned for severe punishment and Go’s extensive prior record of similar crimes were also considered unfavorable factors.

However, the court took into account favorable factors such as Go’s admission of wrongdoing and remorse in B’s case, and that the victim company in D’s case received about 67.2 million KRW of the goods payment and recovered 30.76 million KRW through deposit claim seizures around April 2019.