S. Korean tycoon jailed for 12 years
Print Edition
A SOUTH Korean business tycoon was yesterday handed a heavy prison sentence for selling bad debt, inflicting huge losses to a vast number of individual investors.
Hyun Jae-Hyun, the head of the troubled Tong Yang Group, was sentenced to 12 years in prison, the heaviest judicial punishment doled out to a South Korean businessman since 1997.
South Korean courts have in the past been lenient to heads of business groups who broke laws, citing their contribution to the country’s economic development.
Yonhap news agency described the sentence as extraordinary.
Hyun was found guilty of ordering the group’s affiliates to issue 1.3 trillion won (US$1.2 billion) worth of corporate bonds and commercial papers between February and September last year even though he knew the companies would be unable to pay off the debts.
“This is a fraud on a spectacular scale which caused large financial losses to 40,000 investors. The accused deserves a heavy punishment,” the Seoul Central District Court said in a statement.
The court also sentenced three others — all CEOs of Tong Yang Group subsidiaries — to between 42 and 60 months in prison for their roles in the fraud.
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