A Seoul court has sentenced Yoo Hyuk-gi, 53, second son of the late former Semo Group Chairman Yoo Byung-eun, to five years in prison for receiving bribes from affiliates and laundering 25.4 billion won. The ruling includes a fine of 9.247 billion won, with Yoo immediately detained in court.
Court Details the Violations
The special prosecutor’s economic crimes division convicted Yoo on charges of improper solicitation and graft. On December 12, Criminal Division 14, presided over by Judge Sohn Seong-beom, imposed the sentence. Prosecutors had sought eight years imprisonment and a 25.49 billion won additional fine during the December closing arguments.
The court acknowledged the absence of precedents for such solicitation crimes and noted that an arrest warrant remained active for three years and six months while Yoo stayed in the United States. Defense arguments highlighted these factors in explaining the reduced sentence.
Pattern of Bribery and Embezzlement
From March 2008 to March 2014, Yoo served at major affiliates of his father’s companies. He collected approximately 25.493 billion won through various pretexts, including salaries, sales commissions, business entertainment expenses, condolence payments, and advertising fees.
After establishing his private firm ‘Sangnap,’ Yoo disguised the bribes as legitimate salaries. He then laundered the funds through personal accounts and spent them on luxury overseas properties, buildings, high-end vehicles, and renowned artworks.
Affiliates Describe Coercion
Affiliate representatives report intense pressure from Yoo, marked by violent outbursts and relentless demands. One executive stated, “Representatives were terrified of his aggressive demeanor and the influence of his father’s legacy. Refusing him seemed impossible.”
The court agreed, observing, “Considering the defendant’s personal power and his father’s lingering influence, affiliates likely had no choice but to comply.” It added that the offenses warranted strong condemnation due to their severity.
Investigation Timeline
Authorities uncovered embezzlement of 25.49 billion won from a Jinan-based group firm. Following Yoo’s 2014 arrest and detention in Seoul, the probe paused while he resided in the U.S. He returned to South Korea in August 2023, prompting resumption of the case.
