Yu says "Company-to-company financial transactions acknowledged, denies embezzlement"
Yoo Hyuk-ki (50), the second son of former Semo Group chairman Yoo Byung-eun (deceased in 2014), who is accused of embezzlement amounting to around 25 billion won, has been indicted.
The Criminal Division 6 of Incheon District Prosecutors' Office (Chief Prosecutor Son Sang-wook) announced on the 22nd that Yoo was arrested and indicted on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. With Yoo being forcibly extradited from the United States to South Korea nine years after the Sewol ferry disaster and brought to trial, the investigation into Yoo Byung-eun’s family and close associates has effectively concluded.
Yoo is accused of conspiring with affiliate company representatives, who were close aides of his father, to embezzle a total of 25 billion won under the pretext of consulting fees, diverting the money to personal accounts or overseas corporations. The prosecution explained that Yoo either did not actually perform consulting work or received de facto 'kickbacks' from affiliates under false trademarks and other pretenses, and that he engaged in 'money laundering' by distributing the embezzled funds into various accounts before consolidating them again.
Furthermore, it was revealed that Yoo used the embezzled money to purchase overseas real estate, hold a photo exhibition of his father, and partially spend it on luxury vehicles and designer goods. However, Yoo reportedly denied all charges during the prosecution’s investigation, stating, "There were financial transactions between companies, but no embezzlement."
The second son of Yoo Byung-eon, former chairman of the Semo Group (deceased in 2014), Yoo Hyuk-gi, entered the country through Incheon International Airport on the morning of the 4th, nine years after the Sewol ferry disaster, and is being escorted to the Incheon District Prosecutors' Office. 2023.8.4 [Photo by Yonhap News]
Earlier, the special investigation team of the Incheon District Prosecutors' Office identified Yoo Byung-eun’s family as the actual controlling shareholders of the shipping company Cheonghaejin Marine immediately after the 2014 Sewol ferry disaster and conducted a large-scale investigation into management corruption. The prosecution judged Yoo Hyuk-ki as the 'business successor' of his father, Yoo Byung-eun, and requested extradition from the U.S., eventually forcibly repatriating him from the U.S. nine years after the Sewol ferry disaster.
A prosecution official stated, "Yoo, who was the business successor of Yoo Byung-eun, embezzled vast funds from the Sewol ferry company affiliates overseas for personal use," adding, "Since 2014, 6.1 billion won of Yoo’s assets and 101.1 billion won of the Yoo family’s assets have been seized or frozen."
With Yoo’s indictment on this day, the investigation into Yoo Byung-eun’s family and close associates has effectively concluded after nine years. A total of 20 people, including six family members, five close associates, and nine affiliate company presidents, were arrested, indicted, and convicted.
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