Admits Charges at First Trial
Hwang's Attorney: "Making Efforts to Compensate"
Actress and former singer Jungum Hwang (41) appeared in court on charges of embezzling approximately 4 billion KRW from her family-owned corporation and investing the funds in cryptocurrency. Hwang's side argued that she invested in cryptocurrency with the intention of growing the company, in which she owns a 100% stake.
According to Yonhap News on May 15, the Jeju District Court's Criminal Division 2 (Presiding Judge Im Jae-nam) held the first trial for actress Jungum Hwang, who was indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement).
According to the indictment, Hwang is accused of embezzling approximately 4.34 billion KRW from her agency's funds around 2022. Of this amount, she invested 4.2 billion KRW in cryptocurrency. The agency in question is a family-owned corporation in which Hwang holds a 100% stake.
At the trial, Hwang's side admitted to all the charges. Her attorney explained, "The defendant invested in cryptocurrency with the intention of growing the company," and added, "Because the corporation could not directly hold cryptocurrency, the assets were temporarily held in her personal name, which ultimately led to the crime."
The attorney further stated, "Since the agency's profits are essentially generated from the defendant's activities, there are circumstances in which the profits ultimately belong to her." The attorney also said, "She has already sold some cryptocurrency to compensate part of the damages, and plans to sell real estate to pay off the remaining amount," and requested leniency from the court.
The second trial for Hwang is scheduled to be held in August.
Meanwhile, it was belatedly revealed in December last year that Hwang paid additional taxes after undergoing a high-intensity tax audit in 2023. At the time, suspicions were raised that there might have been tax evasion during the process of selling a building purchased under the family corporation's name. However, Hwang's agency Y1 Entertainment stated, "Additional taxes were paid due to differences in interpretation during coordination between the tax authorities and the tax accountant," and clarified, "As reported, there were no tax issues during the purchase or sale of the building, and there was no intentional tax evasion, non-payment, or any other wrongdoing."
In March 2018, Hwang purchased a commercial building in Sinsa-dong, Gangnam-gu, Seoul, under the family corporation's name for 6.25 billion KRW. Three years and seven months later, in October 2021, she sold the building for 11 billion KRW, earning a profit of approximately 5 billion KRW. In May 2020, she also purchased a detached house in Itaewon, Yongsan-gu, Seoul, for 4.6 billion KRW.
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