Former Ewha Group Chairman Kim Young-jun Released on Bail Amid Hundreds of Billions in Slush Funds and Tax Evasion Charges

Former Ewha Group Chairman Kim Young-jun, who was arrested and indicted on charges of creating slush funds worth hundreds of billions of won and tax evasion, has been released on bail.

Chairman Kim Young-jun (left) and General Manager Kim Sung-kyu of Ewha Group, who are accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement, breach of trust, and overseas transfer of assets), appeared on May 11 this year at the Seoul Central District Court in Seocho-gu, Seoul, for a warrant hearing.
[Image source=Yonhap News]

According to the legal community on the 1st, the Seoul Central District Court Criminal Division 34 (Presiding Judge Kang Gyu-tae) approved Kim's bail request.

However, the court set conditions for bail, including mandatory attendance at trials, submission of a written pledge not to destroy evidence, and a bail bond of 50 million won. The court also ordered a prohibition on any contact?whether by phone calls, text messages, SNS, direct or indirect communication through third parties?with witnesses or persons related to the case. Residence restrictions and a ban on leaving the country without permission were imposed. An electronic device for real-time location tracking was also mandated.

Kim is accused of hiding 37.3 billion won using nominee accounts and domestic and overseas paper companies to avoid paying 26.7 billion won in overdue taxes from 2012 to this year. He is also charged with embezzling 11.4 billion won by creating slush funds through falsely appointing family members as advisers in affiliates or by falsifying company accounting records for personal use.

Regarding the allegation of causing 18.7 billion won in damages by selling shares of affiliates such as Ewha Electric Industry at prices below market value, charges of breach of trust and gift tax evasion were applied. He is also accused of gaining 7.4 billion won in unfair profits by inflating stock prices through false disclosures and then selling shares.

Kim is further accused of illegally transferring 17.3 billion won of affiliate funds to overseas Hong Kong-listed corporations he owned without reporting to financial authorities, and causing 58.8 billion won in damages to related companies by having his own shares purchased at inflated prices.