SK Corp Chairman Given Suspended Sentence
The appellate court in Seoul has handed down a suspended jail term to SK Corp. chairman Chey Tae-won. In addition, former SK Group chairman Sohn Kil-seung also received a suspended sentence. Both were accused of insider trading and accounting fraud.
The SK Corp. is the de facto holding company for the SK Group, KoreaÂ?s fourth-largest conglomerate. The SK Group leading firm is SK Telecom.
The Seoul High Court yesterday sentenced both Chey, 44, and Sohn, 64, to three years in prison with the term suspended for five years, easing a lower court sentence of three-year jail terms.
In June 2003, the chairman of SK Corp. was convicted for accounting fraud and illegal stock trading between SK affiliates.
Chey was indicted for inflating the firmÂ?s profit by 1.55 trillion won by falsely reducing the debts of its subsidiary, SK Global. He is also accused of profiteering 95.9 billion won by exchanging shares of SK Corp. with those of its hotel arm, Sheraton Walkerhill, at the unfair rate of one to one.
He was also charged with inflicting 111.2 billion won in damages on SK shareholders by engaging in an under-the-table stock deal between SK Securities and JP Morgan.
Interestingly, the court said it has decided to hand down suspended prison terms to the accused as Chey has made efforts to ensure the transparency of the companyÂ?s governance structure and donated his personal wealth to the firm to solve the problem.
The SK Corp. is the de facto holding company for the SK Group, KoreaÂ?s fourth-largest conglomerate. The SK Group leading firm is SK Telecom.
The Seoul High Court yesterday sentenced both Chey, 44, and Sohn, 64, to three years in prison with the term suspended for five years, easing a lower court sentence of three-year jail terms.
In June 2003, the chairman of SK Corp. was convicted for accounting fraud and illegal stock trading between SK affiliates.
Chey was indicted for inflating the firmÂ?s profit by 1.55 trillion won by falsely reducing the debts of its subsidiary, SK Global. He is also accused of profiteering 95.9 billion won by exchanging shares of SK Corp. with those of its hotel arm, Sheraton Walkerhill, at the unfair rate of one to one.
He was also charged with inflicting 111.2 billion won in damages on SK shareholders by engaging in an under-the-table stock deal between SK Securities and JP Morgan.
Interestingly, the court said it has decided to hand down suspended prison terms to the accused as Chey has made efforts to ensure the transparency of the companyÂ?s governance structure and donated his personal wealth to the firm to solve the problem.
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