Hyosung Group Chair Cho Hyun-joon on the 16th received a final sentence of two years in prison, suspended for three years, in a case where he was indicted on embezzlement and breach of trust charges totaling around 20 billion won.
The Supreme Court's First Division (presiding Justice Noh Tae-ak) finalized the appellate ruling that sentenced Cho to two years in prison, suspended for three years, in the case where he was indicted for violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust and embezzlement) and for occupational embezzlement and breach of trust. The Supreme Court's final ruling came 7 years and 9 months after the indictment in Jan. 2018.
In 2013, when the listing of Galaxia Electronics (GE), a Hyosung affiliate, fell through and he was put in a position to buy foreign investors' shares at the price originally promised, Cho allegedly had GE purchase the shares he owned at 11 times the market price, causing 17.9 billion won in losses.
Cho also, between 2008 and 2009, folded high-priced artworks he owned into an art fund he led to create, reaping a profit of 1.2 billion won (breach of trust), and from 2007 to 2012 he allegedly registered fake employees at Hyosung and its affiliates to siphon off more than 1.6 billion won in company funds.
The trial court sentenced Cho to two years in prison. The court found him guilty on the breach of trust charge for pocketing gains by placing his artworks into the art fund. However, it found him not guilty on the 17.9 billion won breach of trust charge.
The appellate court sentenced Cho to two years in prison, suspended for three years. It also found him not guilty on the occupational breach of trust charge for inserting personal artworks at an inflated price.
The Supreme Court agreed with the appellate ruling.