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SK Group chairman jailed for embezzling company funds | SK Group chairman jailed for embezzling company funds |
(about 2 hours later) | |
The chairman of one of South Korea's largest conglomerates, SK Group, has been sentenced to four years in prison for embezzling company funds. | The chairman of one of South Korea's largest conglomerates, SK Group, has been sentenced to four years in prison for embezzling company funds. |
Chey Tae-won was found guilty of using nearly 50bn won ($46m; £30m) of the group's funds for personal investments. | Chey Tae-won was found guilty of using nearly 50bn won ($46m; £30m) of the group's funds for personal investments. |
Mr Chey was previously imprisoned in 2003 on charges of accounting fraud. | Mr Chey was previously imprisoned in 2003 on charges of accounting fraud. |
The ruling comes amid increasing calls for a tougher stance against misconduct by bosses of South Korea's big conglomerates, also known as Chaebols. | The ruling comes amid increasing calls for a tougher stance against misconduct by bosses of South Korea's big conglomerates, also known as Chaebols. |
"As the head of SK, which has a large influence on the nation's economy, Chey Tae-won should be an example of corporate governance and transparency," Judge Lee Won-beom said. | "As the head of SK, which has a large influence on the nation's economy, Chey Tae-won should be an example of corporate governance and transparency," Judge Lee Won-beom said. |
"But instead [he] embezzled several tens of billions of won in affiliates' funds and tried to pass on the responsibility to the other defendants." | "But instead [he] embezzled several tens of billions of won in affiliates' funds and tried to pass on the responsibility to the other defendants." |
However, a spokeswoman for SK Group said Mr Chey would appeal against the ruling. | |
"After a thorough review of the ruling, [SK] plans to take legal steps to prove [Chey's] innocence," the group said in a statement. | |
'Skirting the law' | |
South Korea's big companies, which include firms such as Samsung, Hyundai and LG, generate almost half the country's total gross domestic product (GDP). | |
They are credited as being the key drivers of the country's economic growth over the past few years. | |
However, they have faced increasing criticism for being too dominant and for using their influence to get away with lenient sentences for any misconduct, not least from the country's newly-elected president. | |
"In the past, there were many cases of skirting the law despite being guilty, because they were powerful or rich," President-elect Park Geun-hye said earlier this week. | |
"The people's trust in the fairness of the law cannot be let down." | |
Bosses of some of the country's biggest conglomerates have previously been found guilty of misconduct. | |
But they have generally received suspended sentences, which in some cases have even been annulled subsequently. |
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