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| ▲ This undated file photo shows Hyosung Group Chairman Cho Hyun-joon. (Yonhap) |
Hyosung chief-court ruling
Hyosung Group chairman fined 200 mln won over unfair biz practice
SEOUL, March 15 (Yonhap) -- Hyosung Group Chairman Cho Hyun-joon was sentenced to 200 million won in fines (US$161,100) on Tuesday for providing illicit financial aid to a cash-strapped affiliate of the conglomerate.
Cho was indicted in December 2019 on charges of giving financial aid to the affiliate, Galaxia Electronics Co. (GE), a LED display manufacturer, through a total return swap (TRS) deal with a special purpose company created by Hyosung Investment & Development Corp.
The Seoul Central District Court found Cho guilty of the charges and sentenced him to the fine, saying that using an affiliate for the benefit of the owner family can impede management transparency, infringe upon creditor interests and negatively affect the economy.
Hyosung Investment was also sentenced to 50 million won in fines.
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