Korean conglomerate head jailed for four years over embezzlement

A Seoul court yesterday sentenced the head of the South Korean conglomerate Hanwha to four years in prison for embezzlement and…

A Seoul court yesterday sentenced the head of the South Korean conglomerate Hanwha to four years in prison for embezzlement and made a rare decision to have the businessman dispatched directly to prison from the courtroom.

The Hanwha chairman, Kim Seung-youn (60), was convicted of embezzling almost 300 billion won and was ordered to pay a fine of 5.1 billion won.

For years, South Korean courts have been perceived as lenient toward businessmen who face corruption charges. Since 1990, the heads of seven of the country’s top 10 family-controlled conglomerates have been sentenced to a combined 22.5 years in prison for crimes including bribery, embezzlement and tax evasion.

None of the seven spent more then a few months behind bars. Their sentences were suspended by judges, according to Chaebul, a website that monitors the country’s conglomerates, and all seven returned to management positions after receiving presidential pardons.

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Hanwha has subsidiaries in a range of sectors including construction, insurance, chemicals and explosives.

At least two other leaders of major conglomerates face court cases. Hanwha said Kim would appeal the ruling.

– (New York Times service)