Using Officer Position in 'Sashilhon Gwangye' to Embezzle 6.5 Billion Won... Woman in 40s Sentenced to Prison

Established Military Aircraft Parts Brokerage and Received Special Privileges
Court: "Considering the Acquired Benefits, the Crime Is Serious"

A woman in her 40s who used the status of her common-law partner, a naval officer, to secure a parts supply contract worth tens of billions of won from Korean Air was sentenced to prison by the court.

Ms. A (in her 40s) co-founded a military aircraft parts supply brokerage with her common-law partner, Navy Lieutenant Colonel Mr. B, and served as the CEO from April 2017.

Mr. B had substantial management authority over the Navy's outsourced maintenance projects for military aircraft, and using this position, he demanded that Korean Air, an outsourced maintenance company for military aircraft, purchase helicopter refurbished parts from the company represented by Ms. A.

As a result, despite having no business performance, their company received approximately 6.35 billion won in parts payments from Korean Air as a partner company over about a year starting June 2018.

Moreover, Ms. A is also accused of embezzling about 560 million won of company funds from January 2018 to February 2021 by falsely registering her biological mother and father as employees of her company.

Ms. A’s defense attorney, charged with bribery, violation of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), and other offenses, argued, “Ms. A did not perceive the registration of the partner company and the contract award as bribery,” and “The partner company registration was conducted through normal procedures, and she was unaware that Mr. B requested the partner company registration.”

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However, the court judged that Ms. A received enormous economic benefits funded by the national defense budget, sentencing her to three years in prison and ordering a fine of 2.8 billion won. Previously, the prosecution had sought a seven-year sentence.

The court explained, “Although Ms. A may have lacked precise awareness that this constituted bribery, it appears she clearly understood the facts, including that she gained the opportunity to obtain huge profits through the preferential treatment of partner company registration,” and “Considering the benefits Ms. A acquired, her culpability is serious.”

However, the court stated the sentencing reasons, “Taking into account that she has no prior criminal record except for a traffic accident fine, repaid 50% of the embezzled amount after the conclusion of the trial, and has children to support.”

Ms. A and the prosecution have appealed the first trial verdict. Mr. B is known to have been sentenced to five years in prison in the military court’s first trial and has also appealed.

Meanwhile, the court sentenced a Korean Air executive director, who facilitated the registration of Ms. A’s company as a partner and provided convenience during the military aircraft project process at Mr. B’s request, to two years in prison with a three-year probation. A department head and a deputy manager each received one year and six months in prison with two years probation.