Former CJ Vice Chairman Lee Jae-hwan, younger brother of CJ Group Chairman Lee Jae-hyeon, was sentenced to probation on charges of embezzling company money.
The Seoul Central District Court sentenced former Vice Chairman Lee to two years in prison and three years of probation for embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, and embezzlement and breach of trust at work.
The court pleaded guilty to most of the charges, noting that "the defendant used the company's funds privately, even though he was obliged to supervise the company's financial management strictly and transparently as the CEO."
In addition, the court explained the reason for the sentencing, saying, "We considered the fact that we paid a deposit of 1.4 billion won in the name of repayment with personal funds to compensate for all actual losses and damages."
Former Vice Chairman Lee was handed over to trial in September last year on charges of extorting a total of 2.7 billion won from the company while working as CEO of CJ Powercast.
As a result of the investigation, it was revealed that former Vice Chairman Lee purchased a personal yacht with company money of 1.4 billion won in 2016, and a passenger car of over 100 million won and a camper of 150 million won with company money around 2012.
It was also investigated that he had paid salaries with company money while actually serving as personal assistants, such as having company executives stay in a dormitory near the company house and accompany them on private schedules such as drinking, sauna, walks, and exercise.
Both the former vice-chairman's side and the prosecution appealed against the verdict of the first instance.
(Photo = Yonhap News)