[Invest&Law]Divorce, Inheritance, Embezzlement... Chairmen on Trial

It has been revealed that at least 30 business founders, chairmen, and executives who effectively control large, medium-sized, and small enterprises, as well as financial institutions, are currently facing multiple lawsuits. According to The Law Times' review of ongoing cases as of October 24, these individuals are standing trial as defendants in 16 criminal cases. There are also 12 civil lawsuits and 2 family lawsuits involving them.

Lee Jae-yong, Chairman of Samsung Electronics, is engaged in three lawsuits with shareholders related to the 2015 merger between Samsung C&T and Cheil Industries. The National Pension Service has filed a damages suit against Chairman Lee, which is being heard by the 21st Civil Division of the Seoul Central District Court (Presiding Judge Kim Ji-hye). No hearing date has been set yet. Shin Dong-bin, Chairman of Lotte Group; Kim Hong-kuk, Chairman of Harim Group; Kim Jun-ki, Founding Chairman of DB Group; Chung Mong-won, Chairman of HL Group; and Park Moon-deok, Chairman of HiteJinro, are all facing shareholder derivative lawsuits. Minority shareholders are demanding recovery of company losses due to penalty payments and correction of excessive compensation, among other issues.

Divorce and Inheritance Lawsuits

Chey Tae-won, Chairman of SK Group, and Koo Kwang-mo, Chairman of LG Group, are embroiled in family disputes. The divorce case between Chairman Chey and Noh So-young, Director of Art Center Nabi, was overturned by the Supreme Court on October 16. The Supreme Court’s First Special Division (Presiding Justice Seo Kyung-hwan) ruled that the division of assets should be recalculated, excluding the portion contributed by former President Roh Tae-woo’s illicit funds. The retrial has been assigned to the First Family Division of the Seoul High Court (Presiding Judge Lee Sang-joo). Chairman Koo is engaged in an inheritance recovery lawsuit with the family of the late Koo Bon-moo, former Chairman of LG Group. The 11th Civil Division of the Seoul Western District Court (Presiding Judge Koo Kwang-hyun) is handling the case. After a preparation process lasting one year and nine months, the first hearing is scheduled for November 27.

Yoon Dong-han, Chairman of Kolmar Group, is suing his son, Yoon Sang-hyun, Vice Chairman of Kolmar Holdings, to reclaim Kolmar Holdings shares he previously gifted to him. Choi Yoon-beom, Chairman of Korea Zinc, is currently involved in multiple lawsuits after his long-standing partnership with Young Poong Group broke down.

Embezzlement, Breach of Trust, and Violations of Labor and Serious Accident Laws

Cho Hyun-bum, Chairman of Hankook & Company Group; Hur Young-in, Chairman of SPC Group; and Jung Do-won, Chairman of Sampyo Group, are all standing criminal trials. Chairman Cho, charged with embezzlement and breach of trust, was sentenced to three years in prison at the first trial and is currently detained while appealing to the 13th Criminal Division of the Seoul High Court (Presiding Judge Baek Kang-jin). Chairman Hur is involved in a case related to pressuring members to withdraw from the Paris Baguette branch of the Korean Confederation of Trade Unions’ chemical and textile union. He has faced 70 hearings so far on charges of violating the Labor Union Act. Chairman Hur was detained but later released on bail. The 32nd Criminal Division of the Seoul Central District Court (Presiding Judge Ryu Kyung-jin) plans to continue hearings until February next year. Chairman Jung has been standing trial for a long period in connection with a serious industrial accident case. Although not detained, he has been shuttling between Seoul and Uijeongbu as the case is being handled by Judge Lee Young-eun of the 3rd Single Criminal Division of the Uijeongbu District Court.

Reporter Lee Sangwoo, The Law Times

※This article is based on content supplied by Law Times.