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[Alpha Biz= Kim Jisun] Choi Shin-won, Former SK Networks Chairman, Sentenced to Prison in Appeal for Embezzlement and Breach of Trust
Choi Shin-won, the former chairman of SK Networks, who was indicted on charges of embezzlement and breach of trust amounting to over 200 billion KRW, was sentenced to a prison term in the appeal trial and was taken into custody in the courtroom.
On Thursday, the Seoul High Court’s Criminal Division 13 (Presiding Judges Baek Kang-jin, Kim Sun-hee, and Lee In-soo) upheld the first-instance verdict and sentenced Choi to 2 years and 6 months in prison for embezzlement under the Specific Economic Crimes Aggravated Punishment Act, and ordered his immediate detention.
Along with Choi, the other defendants, including Choi Dae-sik, Chairman of the SK Supex Council, Jo Kyung-mok, CEO of SK Energy, Ahn Seung-yoon, CEO of SK Telecom, and Choi Mo, former Head of SKC’s Management Support Division, were acquitted, just like in the first trial.
The High Court recognized that out of the 58 billion KRW in embezzlement and breach of trust acknowledged by the first trial, 56 billion KRW was valid, excluding about 20 billion KRW.
The court criticized Choi, saying, “The damage caused by the embezzlement and breach of trust exceeds 56 billion KRW,” and added, “As the chairman of the group, Choi held considerable influence, and most decisions were made under his direct instruction, making his responsibility heavy.”
Specifically, like the first trial, the court found Choi guilty of embezzlement for using funds of SK Telecom, totaling 28 billion KRW for personal capital increase and capital gains tax payments.
The court rejected Choi’s argument that the funds were borrowed temporarily and that there was no illegal intent, stating, "It is difficult to evaluate that there was an intent to immediately repay, as Choi had planned to sell the shares later and repay them." It also added, “Given the repeated withdrawals and personal use of the funds, it is hard to deny the intention of illegal gain.”
The court also recognized breach of trust for the 15.5 billion KRW loaned to Choi for a personal golf course project by SK Telecom. The false salary payments and the payment for personal use of the Walkerhill Hotel villa were also considered embezzlement. However, the decision for SKC’s participation in the SK Telecom capital increase, worth about 90 billion KRW, was not regarded as breach of trust under the Special Economic Crimes Act.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
