Seoul: An appellate court on Thursday reduced the sentence of former Kumho Asiana Group Chairman Park Sam-koo to 2 1/2 years in prison, suspended for four years, after convicting him of violating fair trade laws while acquitting him of the most serious charges of embezzlement and breach of trust.
According to Yonhap News Agency, the Seoul High Court handed down the sentence to Park, slashing a lower court’s ruling of 10 years in prison for embezzlement of company funds, breach of trust, and fair trade law violations. Park, former chair of Kumho Asiana Group and its affiliate Asiana Airlines, had been accused of masterminding unfair interaffiliate transactions to rebuild the group and regain control of group companies.
In 2021, Park was indicted on charges of seeking to acquire shares in Kumho Industrial, the parent company of Asiana Airlines, by establishing a special purpose company (SPC) – Kumho Buslines – in which he owned 100 percent of shares. He was charged with withdrawing 330 billion won (US$239 million) from four affiliates to pay for the return of Kumho Industrial shares from the state-funded Korea Development Bank and other creditors, as well as underselling 100 percent of Asiana’s shares in Kumho Terminal to Kumho Buslines.
In its ruling, the appellate court stated Park was not guilty of embezzlement and breach of trust, as the 330 billion won was acquired through “valid” means, while the price of the Kumho Terminal shares reflected their value. However, the court did find him guilty of violating the fair trade law by unfairly mobilizing nine group companies to offer unsecured low-interest loans of 130.6 billion won to Kumho Buslines.
Park was arrested in 2022 but released on bail the following year.