Lotte Ruling Extends List of Convictions for Korea Inc. Chiefs

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(Bloomberg) -- A Seoul court sentenced Lotte Group Chairman Shin Dong-bin on Tuesday to 30 months in prison after finding him guilty of charges stemming from Lotte’s decision to give 7 billion won ($6.5 million) to a confidante of former President Park Geun-hye. The ruling came less than two months after Shin was convicted of embezzlement and breach of fiduciary duty in a separate case where he drew a suspended sentence.

The latest conviction adds to the list of financial crimes committed by family-controlled groups, known as chaebol, a business culture President Moon Jae-in has pledged to reform.

Other notable chaebol convictions:

Lotte Ruling Extends List of Convictions for Korea Inc. Chiefs
  • Jay Y. Lee, heir apparent at Samsung, was convicted of bribery, perjury and embezzlement in August and handed a five-year prison sentence for his role in the Park scandal. The vice chairman of Samsung Electronics Co. was accused of paying bribes to a confidante of the then-South Korean leader to get government backing for a merger of affiliates that tightened his grip on the smartphone maker. He walked free from prison last week after an appeals court suspended his sentence.
Lotte Ruling Extends List of Convictions for Korea Inc. Chiefs
  • Lee Kun-hee, Samsung Group chairman and Jay Y.’s father, was convicted twice. In 2008 it was for tax evasion. He was given a suspended three-year prison sentence, then eventually pardoned by President Lee Myung-bak. That followed a 1996 conviction for bribing ex-President Roh Tae-woo that resulted in a two-year suspended prison sentence and subsequent pardon.
Lotte Ruling Extends List of Convictions for Korea Inc. Chiefs
  • Chung Mong-koo, Hyundai Motor Group chairman, was convicted of embezzlement and breach of duty in 2007. He was given a suspended three-year prison term after promising to make a donation to charity of 1 trillion won, which was worth $1 billion at the time. Chung was also pardoned by Lee Myung-bak.
Lotte Ruling Extends List of Convictions for Korea Inc. Chiefs
  • Chey Tae-won, SK Group chairman, was jailed twice. He was sentenced to four years in prison in 2013 for embezzling corporate funds, but was pardoned in 2015 by Park Geun-hye. In 2003, he was sentenced to three years in jail before he was pardoned in 2008.
Lotte Ruling Extends List of Convictions for Korea Inc. Chiefs
  • Lee Jay-hyun, CJ Group chairman, was convicted in 2014 of embezzlement, breach of fiduciary duty and tax evasion before eventually being sentenced to two-and-a-half years in jail. Lee, who is Jay Y.’s cousin, has been in and out of jail during that period because of complications stemming from a kidney transplant in 2013. Park Geun-hye pardoned Lee in August 2016.
Lotte Ruling Extends List of Convictions for Korea Inc. Chiefs
  • Kim Seung-youn, Hanwha Group chairman, was convicted of embezzlement in 2012, for which he was sentenced to four years jail, and also for assault in which he received an 18-month sentence in 2007. Both sentences were suspended. He received a pardon for his assault conviction from Lee Myung-bak in 2008.

©2018 Bloomberg L.P.

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