[Dispatch=Reporter Park Hye-jin] Kang Jong-hyun, the actual owner of a company related to 'Bithumb,' was sentenced to seek 20 years imprisonment. Kang Jong-hyun is the ex-boyfriend of actress Park Min-young and the substantial owner of Vident, InBioGen, and Bucket Studio.
The Seoul Southern District Court's Criminal합의 12 Division (presiding judge Park Jong-yeol) held a final trial for Kang Jong-hyun and five others on the 18th. The prosecution sought 20 years imprisonment, 150 billion won in fines, and 18.1 billion won in additional charges against Kang Jong-hyun.
Kang Jong-hyun faces charges of breach of trust and embezzlement under the Act on Aggravated Punishment of Specific Economic Crimes, and fraudulent improper trading under the Capital Markets Act. He allegedly embezzled 62.8 billion won in company funds from 2020 through September 2022.
The prosecution believed that Kang Jong-hyun and his associates issued convertible bonds (CB), spread favorable information to drive up stock prices, and reaped illicit gains of approximately 35 billion won. There are also charges of breach of trust for transferring call options at cheap prices, causing damage to the company.
After the 'Dispatch' report, he is also accused of instructing employees to replace and dispose of computer hard drives and mobile phones. There are also allegations that he caused an employee managing shell accounts to flee overseas.
The prosecution viewed Kang Jong-hyun as the principal offender. "As the principal offender in this case, he is not acknowledging major crimes," and "his criminal conduct is poor, as he instigated evidence destruction and fleeing during the investigation," the prosecution stated in its sentencing recommendation.
Kang Jong-hyun's side denied the charges. In final arguments, they stated, "Fraudulent improper trading must be a case where there is a risk of misleading investors and harming market fairness and credibility, but the prosecution did not address this. They lumped together comprehensive factual matters," they argued.
Regarding breach of trust, they countered, "There was no intent of willfulness or illicit gain, and even if breach of trust is established, application of the special law is impossible. When the amount cannot be specifically calculated, the special law does not apply, and experts and witnesses testified that the prosecution's method of calculating damages was improper."
Heavy sentences were also sought for the co-conspirators. The prosecution sought 15 years imprisonment and 30 billion won in fines, plus approximately 2.4 billion won in additional charges, against Wonyoung-sik, former chairman of Green Snake Group. The court considered the scale of illicit gains and unpaid taxes to be significant.
Kang Ji-yeon, Kang Jong-hyun's younger sister and representative of Bucket Studio, was sought 7 years imprisonment. A Mr. Cho, representative of a non-listed Bithumb-related company, was sought 6 years, while employees Mr. Cho and Mr. Kim, who received instructions from Kang Jong-hyun, were each sought 5 years.
'Dispatch' reported in September 2022 that Park Min-young and Kang Jong-hyun were in a relationship. It was the first to reveal Kang Jong-hyun's identity. It raised questions about his fraud conviction, improper loans using hundreds of billions of won in private placement bonds, and suspicions of asset-less M&A.
Subsequently, they obtained seven shell accounts of his and reported additional circumstances of money laundering. He was first arrested on February 2, 2023. In August of the same year, charges of evidence destruction and instigating fleeing were added.
Park Min-young also underwent prosecution investigation as a witness. She stated, "I did not receive any financial support," but the prosecution's indictment noted that 250 million won from a related company 'IT' was transferred to Park Min-young's personal account under the name of living expenses.
<Photo=Dispatch DB>
