Kwon Jin-young, CEO of Hook Entertainment, who was indicted on charges of privately misusing about 4 billion won in company funds, received a suspended prison sentence in the first trial.
The Criminal Agreement Division 12 of the Seoul Southern District Court (Presiding Judge Park Jong-yeol) on the 3rd sentenced Kwon, who was indicted on charges including embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, to two years in prison, suspended for four years.
The court said, "Exercising control over a company to arbitrarily divert assets is not socially acceptable and cannot be considered a minor crime," adding, "Even a one-person company can cause unexpected harm to others related to the company, so strict management is necessary."
However, it said it took into account for sentencing that Kwon acknowledged the charges and that all damages were recovered through repayment and consignment deposit.
Kwon was indicted in Oct. last year on charges of using about 4 billion won from Hook Entertainment's funds for personal purposes, including purchasing furniture and paying insurance premiums, from 2012 to Oct. 2022.
Separately, Kwon is also on trial on charges of illegally obtaining prescriptions for 17 sleeping pills on three occasions in 2022 through an employee. Kwon also had a dispute over settlement payments with singer-actor Lee Seung-gi, who worked at Hook Entertainment for 18 years.