● Chun Doo-hwan's eldest son's “gorgeous card life”

“You live like a noble”

I thought about looking into the history of using the four-year corporate card of Jeon Do- hwan, the eldest son of former President Jeon Jae-guk. The taste was luxurious and there was no bitterness. From Gangnam's famous Japanese restaurants, hotel restaurants, and Michelin guides that cost hundreds of thousands of won at a meal, to classic dining outlets known for classic dining, as well as classic furniture stores and antique furniture stores. Payments ranged from as little as tens of thousands of won to as many as millions of won at a time. In famous overseas cities, which went out during the holidays, they spent millions of dollars at hotels and restaurants, and tens of millions of dollars were paid in overseas online shopping malls such as Amazon. This is the sole report of SBS on May 18, 8 News.

▶ [Exclusive] Son Doo-Hwan Jeon, Corporate Card 'Peng-Fung'… Luxury living capture

Of course, if you have money, you can use it. Korea is a capitalist society. The domestic demand is also stagnant, but if you write hard, it will be good for the business. Moreover, Mr. Jeon Jae-guk was once Korea's strict royal family. The problem is, where did it come from and whose money it was.

As a result of the coverage of SBS, the issuer of the corporate card was confirmed as Book Plus, a book distribution company owned by Mr. Jeon Jae-guk. In 2013, it was a company that promised to pay a 51% stake instead of Chun Doo-hwan's fines. In fact, it was interpreted as meaning to give up management rights, but the situation where Mr. Jeon continued to exert influence over the company and tried not to release control until recently was confirmed. As of May 2020, the fines not yet paid by the former family are over 100 billion won.
● In 2013, the company that said, “I will sell and pay fines” in response to public opinion pressures,

was an unforgettable year for Chun Doo-hwan's family. The fine of 205 billion won, which was imposed on the judgment of the Supreme Court in 1997, was about to expire. The surcharge paid over the past 16 years was only 53 billion won, which is a quarter of the level, and there was still a surplus of 1672 billion won. As the media questioning continued, the prosecution set up a special recovery team to conduct a massive investigation of the Chun Doo-hwan family, and the National Assembly called the Chun Doo-hwan collection law (some amendments to the Special Confiscation Act on Civil Service Crimes) to increase the scope of the collection and expand its scope. Passed. When Chun Doo-hwan's brother-in-law Lee Chang-suk was arrested and seizure and search were conducted on his family, the eldest son Jae-guk reached the 'declaration of surrender' on behalf of the family. On September 10 of that year, he attended the prosecutor's office to submit a plan to pay the penalty and apologized to the public.

[Jeonjae Kuk / Last September 10, 2013: I would like to apologize for bowing my head on behalf of all of my family members for their concern to the public. My father told us to cooperate as much as possible with the actions of the authorities as much as we could, and we also wanted to respond to that, but we are very sorry for the delay in the resolution due to our shortcomings and realistic difficulties. (Omitted) In the future, all of our families will cooperate as far as possible to ensure the smooth completion of the authorities' retrieval process until the fines are fully paid, and will faithfully work on further investigation. Once again, I bow down and apologize to the people on behalf of the whole family.]

At that time, Jeon Jae-guk presented 204,000 shares (51%) of Book Plus stock, which he put together with his own office building and art works. Originally, the proportion of stocks held was 64.5%, which meant that they would put down the largest shareholder position. Along with this, Mr. Jeon also resigned as an executive director. At the time, referring to Mr. Jeon's message and media articles, it was read as saying that he would actually take his hands off management.

However, Mr. Jeon seems to have continued to participate in management by continuing to be an executive of Book Plus. According to the certified copy of the Book Plus Register, Mr. Jeon took office as the other non-executive director on the same day he retired from the executive director in March 2014. Other non-executive directors are directors who do not attend the company. Unlike non-executive directors, there are no restrictions on qualifications. I was issued a corporate card instead of a salary, and as much as 5 to 6 million won a month was used like 'ssamjidon'. In the company that offered to sell and pay the penalties, the company retained management rights and received a corporate card.
● "Lawful use" and no data submitted… Let's

say that you can use a corporate card if it is related to the company's business by making a concession to "embezzlement and tax evasion" . As will be explained later, Book Plus has several relationships with other companies related to Mr. Jeon Jae-guk. It is impossible to rule out the possibility that Mr. Jeon carried out work related to the interests of Book Plus Co., Ltd. until the shares sold by the auction were sold. Therefore, it is premised that all payment details cannot be determined 100% by 'unfair corporate card use'. However, with common sense that anyone who has used a corporate card knows, it has been carefully evaluated based on objective criteria and facts. Since it is a problem to use a corporate card anywhere, we have prepared some criteria that are applied when examining corporate card details by tax authorities including the National Tax Service.

<Cases of unfair execution due to corporate card monitoring by tax authorities>
1) Use of legal holidays and holidays
2) Use of remote areas significantly outside the jurisdiction
2) Use of abnormal time zones (night time after 24 hours, etc.)
4) Same date suppliers repeated use (partial payment),
5), such as vouchers for personal use securities purchased
6) International region, including the domestic duty-free
if 7) corporate credit card holders to use a corporate credit card at home neighborhoods outside the workplace jurisdiction

above criteria are General company It is close to the recognized standard that anyone who has handled corporate card related business such as finance or accounting can know. If you enter the corporate card details, it is automatically filtered according to the criteria. Based on this, categorizing Mr. Jeon Jae-guk's corporate card, there are more than 600 cases suspected of wrongful execution, and the amount exceeds 100 million won. This is more than two-thirds of the total payment.

On the morning of May 18, he visited Jeon Jae-guk in person on the morning of May 18, but Mr. Jeon left the car in the car without answering. Instead, after the report, the agent said, "(Bodo) is unfair." As Mr. Jeon also manages music-related publishers, such as the music world, it is clear that payments at music stores and the like are irrelevant to work, and due to the nature of the publishing industry, there are frequent weekends and holidays. Coincidentally, it was argued that overseas visits made during the holiday season were also 'business trips', not travels. He also added that taxes were paid for the amounts not recognized as expenses after external audits.

However, as a result of the SBS coverage, it was confirmed that the accounting firm that was in charge of external audits had not received any vocational data from Mr. Jeon. Accounting Officer Kim Kyung-yul, the representative of Economic Democracy 21, said, "If a case that seems to have less business connection, such as repeated use near home, is not properly called out, it means that the company's funds are used for personal purposes." "A corporation was evacuated from the tax, and in terms of criminal law, the charges of embezzlement are applicable."
● Resale of equity stake CEO returns…

Raising his monthly salary, "I'm rude" Even Jeon Jae-guk returns in October last year as co-president of Book Plus. As will be described later, despite the fact that 51% of the shares released in May last year were sold to other shareholders five months earlier, it was in a situation where it was defending its dominance through paid-in capital increase. And Mr. Jeon raises his salary by 44% from 9 million won to 13 million won. When the new shareholders protested at the general shareholders' meeting, Mr. Jeon responded that he was "rude."

▶ [Exclusive] Son of Chun Doo-hwan raises his salary by 44%… It is

important to point out that the rudeness of the company was "unfavorable enough to close the door because of the Corona 19". In the past three years, Book Plus sales have shrunk nearly 6 billion from 44.6 billion to 388 billion, and operating profit has been negative for the third consecutive year. Full-time employees also fell by 20% from 123 in 2017 to 97 last year. According to the book plus salary statement obtained by SBS, the wages of most employees were frozen, except for some, which increased by about 2% when raising the salary of the previous November. Only Mr. Kwon Mo, who co-represented Mr. Jeon, was greatly raised.

There are many views inside and outside the publishing industry that Jeon's sudden return to CEO is closely related to the book sale of Book Plus last year. The 204,000 shares (51%) of Book Plus, which Jeon presented as a penalty payment in 2013, have been inspected 10 times since May last year. One of the actions taken by the former Mr. Lee, who had been successful in losing control of the company as a result of losing his position as the largest shareholder, is 'returning the CEO' with 'paid-in capital increase'. (* Refer to the SBS 8 news report below)

▶ [Exclusive] Jeon Jae-kuk, the company's 51% stake in 'domination rights'… Tips and tricks sseotna

Taken together these facts, Mr. jeonjaeguk basing plus interest ㈜ book can not not like this question: Did thing from the very beginning that he would not step down from frontline management "for the public to appease. Of course, as the auction was made last year, Mr. Jeon paid a fine of 600 million won. However, considering the situation in which Mr. Jeon has been using the company's company to 'privatize' the company even after 2013, the question is whether it was possible to make a normal short sale from the beginning. "Anyone in the industry knows that Book Plus is an inseparable company from Mr. Jeon Jae-guk. Who knows that, and who is going to take over?" After 10 rounds of actual inspections, the value of the stake decreased from 2 billion won to 600 million won. The amount of fines attributed to the state was also reduced.

● Remaining fines 'KRW 150.5 billion'… Are you willing to pay?

In any case, the payments related to Book Plus Co., Ltd. have already been paid. A legal battle has been announced regarding Mr. Jeon's embezzlement and alleged embezzlement, but this is a separate matter from the penalties. However, in view of the facts and behaviors that are close to moral hazards, it is a strong question whether Jeon Jae-guk and other family members are willing to pay unpaid fines worth more than 100 billion won.

Chun Doo-hwan, whether Alzheimer's or not, still enjoys golf and luxury dinners. The eldest son Jae-guk's life is as I told you, and his family is not much different. In 2013, Jeon Jae-guk's apology to the public, saying that "every family will cooperate as far as possible until the completion of the penalty," became a public check. Rather than cooperating, Jeon's family has changed the attitude of 180 degrees since 2018, including four cases of lawsuits against the Constitutional Court against the 'Chun Doo-Hwan Collection Act'. Since the launch of the special prosecution team in 2013, Jeon's family, who paid a total of 55.5 billion won over the past year, has been taking the time by paying an average of 2 billion won per year for the next five years. At this point, I can see the determined will of the ex-family, 'I will not give up what I have.'

The only remaining judicial responsibility for former President Chun Doo-Hwan, the fifth anniversary of the 18th anniversary of May 18, is the 'Capital of KRW 150.5 billion.' In 1996, he was sentenced to death in the first instance court for the collapse of the 12/12 military revolt, but was released on a special pardon the following year. In 1997, due to the Supreme Court ruling, a fine of 205 billion won was settled, but it has not been paid close to half. In addition to historical convictions, even judicial convictions have been 'currently in progress' for 40 years.


There were companies called 'International Group Dismantling Case' and Chun Doo-hwan's 'International Group'. It was a chaebol group that started as a 'Prince of the Prince' in Busan and created 'Prospex' and rose to the 7th place in the Korean business community. A unique ship-shaped building (formerly known as LS Yongsan Tower) that travels around Yongsan was once used as the headquarters building for this group.

In the 1980s, such a large chaebol was disintegrated overnight. It is one of the worst tyrannys of the fifth ball, the International Group Dismantling Case. Although there was an analysis that it was due to excessive debt inside the group, the background of the group's dismantling process was so unusual that Yang Jeong-mo, the chairman of the International Group at the time, recalled, "The group was dissolved because I woke up." 'Because it looked like a mip' was the dominant interpretation. These are allegations that they paid a small amount for the Japan Sea Foundation or were hated for arriving late at the President's Supper. Although there are several arguments regarding the background and cause, in 1993, the Constitutional Court made a historical evaluation in 1993 when the dissolution of the international group was judged as 'unconstitutional'.

Afterwards, Chairman Jeong-mo Yang dreamed of recovering from the group, but was not successful and died in 2009. After the unconstitutional ruling, a lawsuit was filed to return the stock, but in 1996, the Supreme Court ruled that the plaintiffs ruled against the plaintiff with the intention of saying, "It is true that the government infringes on the freedom of business activities, but this cannot invalidate the contract between individuals." Was. Afterwards, in 2014, the news that both eldest sons of the two chairmen passed their homes, which boasted the best value in Seongbuk-dong because they could not pay their debts, was the last news to the media.

The reason for telling the old story is to reveal the present of the former family more clearly. Prosecutors who invested in Chun Doo-hwan's slush fund in 1996 concluded that Mr. Chun had raised an astronomical slush fund of 950 billion won during his presidency. Of these, a decision was made only about KRW 200.5 billion that could be proved by evidence. No matter how hard the ex-clan family lived, it is undeniable that this 'illegal fund' has been the driving force behind all of the ex-clan family business. Based on the funding powers, the former Clan family has been struggling without any inconvenience (sometimes except for the news). Illegal funds, as well as true apology for the victims of the May 18th, have not been accomplished.
● 與 "I will collect even after death"… In addition to the prosecutor's will and the

ruling Democratic Party Democratic Party leader Kim Tae-nyun, the next day of the 5th and 40th anniversary, on the 19th of the last month, "I will find a way to recover more than 100 billion won in fines, and if necessary, I will open the way to collect even after Mr. ex." said. The so-called 'Chun Doo-Hwan Collection Act' was revised to mean that the aging prescription could be removed. It may take time, but considering the case of 2013, the strong will of the politics is welcome anyway.

The prosecution's will is also important. Due to the lack of support in recent years, similar reports have been reported about the 'will of the prosecution' when it gets closer to May 18 every year. The prosecution's position to wait for the results of several trials raised by the Jeon family is also read. In any case, the prosecution's position is that there has been a steady return, and that this year, an additional 7.5 billion won can be collected according to the ruling on Osan Forest (which is expected to win). This will reduce the remaining fines to 900 billion in 20 years.

Nevertheless, in 2013, Mr. Chun's family said that the payment of large-scale fines was a joint venture between the prosecution's will and the 'Chun Doo-hwan'. It became a checkbook, but it was thanks to the pressure of the prosecution anyway that Mr. Jeon issued a plan to pay the fines in September of that year. Finally, in February, after the Constitutional Court made a constitutional decision on the Chun Doo-Hwan collection law, the lawsuits filed by the former are also waiting for results. A 5 · 18 fact-finding committee was also launched. It seems to be a good momentum to establish 'delayed justice' right away for decades.

Doo-Hwan Jeon and his family's karma are the scars of Korean society. Apart from the issue of fines, the various rumors and controversies related to May 18 have been causing psychological distress to many people for decades, as well as the huge cost of social conflict. How long will you put it like this? I do not doubt that the process of asking 'judicial responsibility' to the end can be the most important button for the solution.