'Split Donation' Former KT CEO Koo Hyun-mo Fined 7 Million Won in Second Trial... Acquitted of Embezzlement Charges

Former KT CEO Koo Hyun-mo, who was indicted on charges of so-called 'split donations' to members of the National Assembly using corporate funds, was sentenced to a fine of 7 million won in the appellate court. The embezzlement charge, for which a fine was imposed in the first trial, was overturned and acquitted in the appellate court.

Former KT CEO Koo Hyun-mo / Photo by Jin-hyung Kang aymsdream@

The Seoul Central District Court Criminal Appeals Division 5-2 (Presiding Judges Kim Yong-jung, Kim Ji-sun, So Byung-jin) sentenced former CEO Koo to a fine of 7 million won on the 19th for violating the Political Funds Act. The embezzlement charge, for which a fine of 3 million won was imposed in the first trial, was overturned and acquitted by annulling the original judgment.

The court stated, "The prosecution indicted the timing of the donation remittance as the time of embezzlement, but unlike the usual creation of off-the-books funds, this case involved securing funds first and paying the amount afterward. Considering this, it is reasonable to view the subsequent payment as embezzlement, and in this case, a conspiracy relationship among the defendants cannot be recognized."

Former CEO Koo was indicted on charges of donating 337.9 million won in slush funds, created by purchasing and reselling gift certificates between May 2014 and October 2017, to 99 ruling and opposition members of the 19th and 20th National Assembly along with nine current and former executives. It was revealed that they deposited slush funds into political party accounts in amounts ranging from 1 million to 3 million won by borrowing the names of executives in charge of government relations.

The prosecution separately filed summary indictments for violations of the Political Funds Act and embezzlement charges against Koo and others according to the Public Official Election Act. Regarding the violation of the Political Funds Act, former CEO Koo was fined 7 million won in the first trial in July last year, and fined 3 million won for embezzlement in October last year.

Former CEO Koo did not appear in court on this day. When a formal trial is held after an objection to the prosecution's summary order, the defendant is not required to attend the sentencing date.