Hancom Chairman Fined in First Trial for Violation of Capital Markets Act

Failed to Report Transactions Worth 300 Million Won to Financial Services Commission
Under Investigation for Creating Slush Funds with Virtual Currency

Kim Sang-cheol, chairman of Hangul and Computer (Hancom), who was indicted for failing to properly report stock fluctuation changes, was sentenced to a fine in the first trial.

On the 4th, Judge Im Rak-gyun of the Criminal Division 6 at Suwon District Court Seongnam Branch sentenced Chairman Kim Sang-cheol, who was indicted for violating the Capital Markets and Financial Investment Business Act, to a fine of 20 million won.

The court acknowledged the guilt, stating, "The defendant admitted to the crime and is reflecting on it." However, it added, "Considering that the defendant, as the largest shareholder, was involved in the circumstances leading to the crime and that the culpability is not light, as well as the confusion caused to general investors, the sentence was determined."

Chairman Kim, the largest shareholder of the group, was indicted without detention in January for failing to report to the Financial Services Commission despite stock ownership changes of more than 1% occurring during 15 transactions worth about 300 million won of Hancom With, an affiliate, between 2019 and 2020.

Separately, Chairman Kim is under investigation by the Seongnam Branch of the Suwon District Prosecutors' Office for allegedly creating slush funds worth around 9 billion won through virtual currency. The prosecution is investigating, believing that Kim led the overall 'virtual currency slush fund creation' case.

Meanwhile, Kim's second son, Mr. Kim (36), who was involved in the virtual currency slush fund creation case and was tried on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, was sentenced to three years in prison in both the first and second trials last year.