Former Haitai chairman sentenced

A prominent businessman is going to jail for looting his company.
The Seoul Central District Court yesterday sentenced Park Kun-bae, the chairman of Haitai Group until 1997, to 18 months’ imprisonment for embezzling 3.5 billion won ($3.8 million) from the company. He was immediately jailed.
The ruling said: “Park previously committed the same type of crime, but continued his conduct. He established ghost affiliate companies and took advantage of company funds as if they were his. Park laundered the money through borrowed accounts. A strict penalty was needed.”
The judges, led by Lee Han-ju, said in the ruling, “In the past, white-collar crimes were dealt with by rather loose standards, but now is the time for the court to deal with this premodern business practice.”
After the Haitai Group went bankrupt in 1997, Park formed a corporate restructuring company, which managed six of the former Haitai companies. Park was found to have embezzled some 3.5 billion won of company funds since 2001. Haitai, established in 1945, was once Korean’s biggest confectionery company, rivaling Lotte.

By Park Sung-woo JoongAng Ilbo [yhwang@joongang.co.kr]