Kim Seung-yeon, chairman of Hanwha Group, who officially returned after 7 years. (Photo = Hanwha Group.)
Kim Seung-yeon, chairman of Hanwha Group, was sentenced to imprisonment in 2014 for embezzlement and misrepresentation worth hundreds of billions of dollars, and officially reinstated management after seven years of resignation from the positions of seven representative directors of Hanwha Corporation and other affiliates. In line with the time when the employment restrictions were released, there were observations that he would take on the role of registered executives at the upcoming regular shareholders’ meeting, but in the end, he chose a method of supporting major affiliates as group chairman.
On the 26th, the Hanwha Group released a press release, and announced that Chairman Kim will take up the role of Chairman with enemies in Hanwha Corporation, Hanwha Solutions, and Hanwha E&C. However, the company will not be in charge of registered executives, but will continue to manage as unregistered executives, and Hanwha Group said, “We considered that we will continue to develop an autonomous and responsible management system according to the business characteristics of each company.”
Chairman Kim’s return to management has been predicted for a long time. Chairman Kim, who was sentenced to three years in prison and five years probation in 2014, was released from employment restrictions on the 19th. This is because the probation period ended in 2019, two years earlier than this, but if you are convicted of malpractice, you will be banned from working at the company for two years after the end of the probation sentence.
In 2012, about 10 years ago, Chairman Kim was indicted without charge for inflicting close to 500 billion won in damages to affiliates, minority shareholders, and creditors through under-named accounts and under-named owners. At the time, the prosecution asked Kim for an additional charge of 150 billion won for nine years in prison. After the sentence was confirmed in 2014 at the revocation court, Hanwha Corporation and Hanwha Solutions (formerly Hanwha Chemical) resigned from the positions of CEOs of seven affiliates.
However, there is an evaluation that it is half of the return of Chairman Kim’s unregistered officer. This is because, as a registered executive, he gave up his main role in the board of directors. Chairman Kim plans to support the management of all three companies, Hanwha Corporation, Hanwha Solutions, and Hanwha E&C as unregistered executives.
Accordingly, there are opinions that the formalization of Chairman Kim’s return to management is practically meaningless. This is because Chairman Kim is known to have served as the head of the company as a major shareholder even during the employment restrictions.
A business official said, “I know that Chairman Kim has made big decisions about the company and went directly to the company to look at the management.” “Returning as an unregistered executive is hardly meaningful in fact.”