A Private Agency with 100% Ownership
Hwang Jung-eum as the Sole Affiliated Entertainer
Actor Hwang Jung-eum has been convicted after she withdrew her appeal following a suspended prison sentence for embezzling approximately 4.2 billion won from her private corporation.
According to the legal community on October 5, Hwang Jung-eum was indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement) and was sentenced to two years in prison, suspended for four years, in the first trial on September 25. However, she decided not to appeal. Prosecutors in charge of the case also did not file an appeal. In criminal cases, if neither party appeals within seven days from the date of sentencing, the verdict becomes final.
Hwang Jung-eum was accused of using approximately 4.2 billion won from Hunminjeongeum Entertainment, a family corporation in which she held 100% ownership, for personal purposes in 2022. The corporation was a private agency with Hwang Jung-eum as its sole registered representative and only artist.
She misappropriated funds by transferring money borrowed under the agency’s name to herself as provisional payments. Investigations revealed that funds were transferred to her personal account on 13 separate occasions. A significant portion of the embezzled funds was used for cryptocurrency investments, while some was spent on personal living expenses such as card payments for property and local taxes.
During the trial, Hwang Jung-eum admitted to all charges. Through her attorney, she expressed remorse, stating, "There was a temporary mismanagement of funds during the operation of the corporation, but there was no intent to deliberately conceal or hide the funds." She also submitted documents showing that she had fully repaid the amount withdrawn as provisional payments from Hunminjeongeum Entertainment in two installments on May 30 and June 5 of this year.
The first trial court pointed out, "The defendant’s use of the funds for speculative investment and expensive personal items was not insignificant, and the seriousness of the crime cannot be overlooked." However, the court also explained the sentencing by stating, "Considering that the victimized company is essentially a corporation solely owned by the defendant, so the loss was not passed on to any external third party, the full repayment of the embezzled amount, and the fact that this was a first offense, these factors were taken into account."
The court further emphasized, "Even if it is a celebrity’s private corporation, accounting and fund management must be strictly separated," adding, "When corporate funds are diverted for personal investment, it is difficult to avoid public criticism."
After the sentencing, Hwang Jung-eum left the Jeju District Court and said, "I am sorry for causing concern."
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