LIG chairman convicted on fraud charges, handed jail termThe Supreme Court convicted LIG Group Chairman Koo Cha-won of fraudulently issuing commercial paper of more than 200 billion won ($194 million) and gave him a suspended sentence of three years in jail. Koo’s probation period is five years.
His two sons, Koo Bon-sang, vice chairman of the defense systems manufacturer LIG Nex1, and Koo Bon-yeop, former vice chairman of LIG E&C, were also convicted for their involvement in the issuance of the bonds. Koo Bon-sang was sentenced to four years in prison and Koo Bon-yeop to three years.
The Supreme Court upheld an appeals court ruling yesterday that convicted the chaebol boss and his sons of issuing fraudulent short-term bonds in order to save LIG Engineering and Construction, despite the fact that they were aware the construction subsidiary was about to fail.