Choi Shin-won, former chairman of SK Networks. (Photo=Yonhap News)

 

 

[Alpha Biz= Kim Jisun] On May 15, South Korea’s Supreme Court upheld a lower court ruling sentencing Chey Shin-won, former chairman of SK Networks, to two years and six months in prison for embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.



The Supreme Court’s third division, presided over by Justice Oh Seok-jun, confirmed that the lower court’s ruling contained no misinterpretation of the legal principles related to the embezzlement charges.



Chey was indicted in March 2021 for embezzling and misappropriating a total of KRW 223.5 billion (approximately USD 165 million) from six SK Group affiliates—including SK Networks, SKC, and SK Telesys—for personal use. The charges included financing a personal golf course business, paying fictitious salaries to relatives, using corporate funds to cover personal capital increase payments and capital gains taxes, and supporting financially troubled affiliates.



He was also accused of illegally issuing debt guarantees, exporting foreign currency without proper reporting, and orchestrating structured currency exchanges through company employees.



In January, the Seoul High Court found Chey guilty of embezzling approximately KRW 56 billion and violating the Foreign Exchange Transactions Act and the Real Name Financial Transactions Act involving KRW 2.4 billion in foreign currency. He was taken into custody immediately after the verdict.



The court recognized the embezzlement of KRW 28 billion from SK Telesys to cover Chey's personal capital increase and capital gains tax liabilities, KRW 15.5 billion borrowed for a private golf course venture, and KRW 12.8 billion misappropriated through fictitious salaries and personal villa usage at the Walkerhill Hotel.



However, the court ruled that SKC’s decision to participate in a roughly KRW 90 billion capital increase for SK Telesys did not constitute a criminal breach of trust under the Specific Economic Crimes Act.

 

 

 

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