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| CJ Group Chairman Lee Jay-hyun |
By Chung Ah-young
The Seoul High Court sentenced CJ Group Chairman Lee Jay-hyun to two years and six months in prison and a fine of 25.2 billion won ($21.3 million) after reviewing his convictions for embezzlement, tax evasion and breach of trust.
The decision was made at a review three months after the Supreme Court sent the case back to the high court in September, citing an improper application of the law on breach of trust.
The ruling was unusual because many corporate heads convicted of financial crimes receive suspended prison terms and are later pardoned by the president.
"It was inevitable to hand down the jail term to Lee although we took many things into consideration," the judge said. "We want to make it clear that such corporate crime should be strictly punished if a person breaks the law for personal interest through evading taxes and embezzling, even if he is head of a conglomerate, to prevent similar cases."
The judge said that he considered Lee's health and the positive influence his return to his position would have on the economy.
"However, we had to put more emphasis on his social responsibility, because large conglomerates take up a huge portion of the country's economy and thus they need to take that much responsibility," he said.
Lee, who attended the hearing in a wheelchair, did not move for about 10 minutes even after the ruling was finished. His aides then helped him exit the courtroom.
Lee was indicted on charges of misusing 165.7 billion won through embezzlement, tax evasion and breach of trust in July 2013.
In an appeal he was found guilty of embezzling 11.5 billion won and evading 25.1 billion won in taxes and breach of trust. However, as the losses from the breach of trust could not be accurately calculated, the court said that it reduced his jail term from the original sentence of three years.
Lee was not put behind bars immediately, as his medical parole will be valid until March 21 next year. He requested the parole for medical treatment when he filed an appeal in November.
Lee has suffered multiple health problems such as Charcot-Marie-Tooth (CMT) disease and side effects following a kidney transplant in 2013. CMT is a genetic disease that causes peripheral nervous system disorders, weakening muscle tissue and sense of touch.
CJ Group said it would not accept the court decision and would again appeal to the Supreme Court.
Previously, the Seoul Central District Court sentenced him to four years in prison and a fine of 26 billion won for embezzling 71.9 billion won, tax evasion totaling 26 billion won and causing 36.3 billion in losses to the firm.
But the high court reduced his jail term to three years, recognizing a lower amount of embezzlement, tax evasion and losses to the company.
While upholding the high court ruling on embezzlement and tax evasion, the Supreme Court ordered the review, saying the high court misapplied a related law on breach of trust.
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