[Alpha Biz= Paul Lee] Jang Sun-woo, CEO of Kukdong Oil & Chemicals, who was indicted for providing money and other benefits to Cho Hyun-bum, chairman of the Hankook & Company Group, in exchange for business favors, has once again been handed a prison sentence in an appellate ruling.
The Seoul Central District Court’s Criminal Appeals Division 5-1 (Presiding Judges So Byung-jin, Kim Yong-jung, and Kim Ji-seon) on Tuesday dismissed appeals filed by both prosecutors and the defendant, upholding the lower court’s sentence of eight months in prison, suspended for two years, along with 120 hours of community service, for charges including breach of trust.
The appellate court rejected Jang’s claim that the first trial involved errors in fact-finding or misinterpretation of the law.
Kim Young-jip, CEO of Friksa, an auto parts manufacturer, who was tried alongside Jang on the same charges and received an identical sentence, also had his appeal dismissed.
Jang was indicted without detention in July 2023 over allegations that Wooham Construction, a company he founded, engaged in improper transactions with Chairman Cho. Prosecutors alleged that Jang leveraged his personal ties with Cho to secure major construction contracts, including the third expansion of Hankook Tire’s Hungary plant in 2013 and the construction of the company’s R&D center, the “Hankook Tire Technodome,” in 2014, rapidly expanding his business in the process.
According to prosecutors, Jang embezzled funds from companies he owned, including Wooham Construction and Seyang Logistics, and used them to provide illicit benefits to Cho in exchange for business favors. He was accused of causing financial losses to the company by allowing acquaintances of Cho to use company-leased Audi A5, A6, and A7 vehicles free of charge. In July last year, the court found him guilty of breach of trust and sentenced him to prison.
Kim, meanwhile, was accused of embezzling company funds while being involved in contracts related to airline ticket issuance for Hankook Tire executives between 2016 and 2017. He was also charged with leasing an apartment in Songpa-gu, Seoul, using an unsecured 1 billion won loan from Cho, and providing the residence free of charge to one of Cho’s acquaintances.
Both defendants are second- or third-generation heirs of prominent business families. Jang is the second son of Jang Hong-sun, founder of Kukdong Oil & Chemicals, while Kim is the son of Kim Eun-soo, former CEO of Rojé Cosmetics and the second son of the late Kim Jong-ho, founder of Hankook China Ware.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
