[속보] Supreme Court cancels Hyosung’s Cho Seok-rae ‘130 billion tax evasion’

Hyosung Chairman Cho Seok-rae is accused of tax evasion and embezzlement. Newsis

Hyosung Group Honorary Chairman Cho Seok-rae, who was sentenced to imprisonment in the second trial for escaping tax of 130 billion won, was re-trialized by the Supreme Court decision.

The third division of the Supreme Court (Presiding Judge Roh Tae-ak) sent the case back to the Seoul High Court on the 30th, breaking the court case sentenced to three years in prison and a fine of 135.2 billion won to Honorary Chairman Cho, who was charged with violating the severe punishment law for certain crimes.

Hyosung Chairman Cho Hyun-joon, the eldest son of Honorary Chairman Cho, has been sentenced to two years and six months in prison and three years probation.

Honorary Chairman Cho is accused of evading corporate tax of 123.7 billion won through fraudulent accounting of 500 billion won for 10 years since 2003, and embezzling 69.8 billion won of new money in Hong Kong through Paper Company. There are also charges of illegally acquiring 50 billion won in dividends to shareholders by manipulating the accounting process in 2007-2008.

The first trial admitted only guilty of tax evasion of 135.8 billion won and part of illegal dividends among the charges of defamation of Joe, and sentenced him to a fine of 136.5 billion won for three years in prison.

Like the first trial, the second trial convicted the charge of tax evasion, but judged that some assets were difficult to see as borrowed stocks. In addition, the part recognized as an illegal dividend in the first trial was turned into innocence, reducing the fine of about 1.3 billion won.

Chairman Cho was handed over to trial on charges of embezzling 1.6 billion won by personally using the company’s corporate card, receiving 15.7 billion won of foreign funds owned by his father under the name of Paper Company, and evading a gift tax of about 7 billion won.

The first trial convicted only of the charges of embezzlement and sentenced him to two years and six months in prison and three years probation. The judgment of the first trial was also maintained at the appeal trial.

Meanwhile, Hyosung Group said in a statement after the Supreme Court sentence, “It is fortunate that this sentence did not cause damage to the company and that there was no pursuit of private interests.” He said, “We have been repatriated for destruction with the innocence, so we will actively express our position at the deliberation trial for revocation.

Reporter Eunbin Kim [email protected]