Hyosung Chairman Cho Seok Rae Gets Three-Year Sentence On Alleged Tax Evasion And Accounting Fraud
Hyosung Chairman Cho Seok Rae was sentenced to a three-year imprisonment on charges of tax evasion and accounting fraud Friday. The 81-year-old businessman was also fined with over $110 million by the Seoul Central District Court, as per Korea Herald Friday.
Cho appeared before the court wearing a white face mask and holding a cane. He was also assisted by two company officials as he entered the Seoul Central District Court for his hearing.
He was found guilty of allegedly evading about $110 million in taxes. However, he was excused from abrupt detention due to health reasons and old age.
"Though responsible for transparent and lawful management of his company, chairman Cho evaded tax duties worth some 130 billion won for a prolonged period," the judges ruled. "Considering his social position, his breach of trust and wrongdoings weigh heavily."
The ruling continued, "Considering the group's operational structure, we found that the group systematically committed accounting fraud."
Korea Joongang Daily noted Saturday that Cho reportedly used shell firms and bank accounts under fake names and false accounting to evade taxes.
The South Korean industrial conglomerate, Hyosung Group, said the business tycoon will submit a petition before the Seoul Central District Court.
"Cho was trying to steer the company through the 1997 Asian financial crisis," the company said in a dispatch. "His actions were not a pursuance of private interests."
"Chairman Cho did not seek personal gains but rather helped Hyosung grow into a global company and raise its market value."
The statement went on, "We will try to demonstrate this aspect in the appeal trial."
On the other hand, the court also sentenced Hyosung Group president, Cho Hyun Joon, to 18 months imprisonment for allegedly embezzling about $1.3 million from the company to settle his credit card bills.
The Seoul Central District Court later suspended the sentence for three years and required the president to complete a 120-hour community service.
