Hanwha chief denied bail as he looks set for drawn-out appeal

A Seoul court yesterday denied bail for Hanwha Group Chairman Kim Seung-youn, who is behind bars for causing the group huge financial losses.

The 60-year-old tycoon was sentenced to four years in prison in August and handed a 5.1 billion won ($4.5 million) fine for using his status as the group’s controlling shareholder to illegally use company money to pay for debts of companies he ran under borrowed names. In November, Kim filed for bail citing poor health and the need to prepare his defense during what is expected to be a prolonged trial.

The Seoul Central District Court, however, dismissed his request, saying there is no just cause to grant arbitrary bail as stipulated by two clauses of the criminal law. The Criminal Procedure Law stipulates that bail is permitted to criminals, excluding those who have been sentenced to the death penalty, life imprisonment or a jail-term of more than 10 years. As an exception to the rule, bail is permitted in exceptional circumstances and at the judge’s discretion.