Huh Jaeho Appears in Court for First Time in Six Years on Tax Evasion Charges

Claim: "Indictment Filed After Statute of Limitations Expired, Should Be Dismissed"

Former Daejoo Group Chairman Huh Jaeho, who had been on trial in South Korea for tax evasion charges, appeared in court for the first time in six years.

On July 4, Huh attended his first hearing at the Gwangju District Court’s 11th Criminal Division (presided over by Chief Judge Kim Songhyun), wearing a blue prison uniform and sitting in the defendant's seat. The trial, which had stalled due to Huh’s absence while he was staying in New Zealand, was restarted from the beginning on this day.

Former Daejoo Group Chairman Huh Jaeho, who was staying in New Zealand, was repatriated to South Korea through Incheon International Airport Terminal 2 on May 27. Photo by Yonhap News

Huh was indicted on charges of failing to pay a total of 507.5 million won in capital gains tax and dividend income tax during the sale of approximately 480,000 shares of Daehan Fire & Marine Insurance, which were held under the names of three acquaintances, including a woman with whom he was in a common-law relationship, between May and November 2007. The prosecution charged him in July 2019 for violating the Act on the Aggravated Punishment of Specific Crimes (Tax Offenses).

However, Huh did not appear in court throughout the trial. For six full years after the indictment, and for a total of seven years, the trial was suspended. Huh was forcibly repatriated to South Korea from New Zealand in May after extradition proceedings and is currently detained at the Gwangju Detention Center.

During the hearing, the prosecution explained the charges, while Huh’s attorney argued, "The indictment was filed after the statute of limitations had expired," and claimed, "The prosecution has abused its discretion, so the charges should be dismissed." Huh also stated, "I agree."

The court scheduled the next hearing for July 21 and decided to continue questioning key witnesses, including those who were the registered shareholders of the stocks.

Previously, Huh had been sentenced to a fine of 25.4 billion won for tax evasion amounting to about 50 billion won, but he fled to New Zealand without paying. After returning to South Korea in 2014, he sparked public outrage when he was sentenced to "Emperor Labor," which allowed him to pay off his fine at a rate of 500 million won per day. In addition to the current trial, Huh is also under police investigation for allegedly misappropriating 10 billion won of Daejoo Group funds for use at a golf course.