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Former Kumho Asiana chair handed reduced sentence on appeal in corruption case

Published: 18 Sep. 2025, 14:59

Park Sam-koo, former chairman of Kumho Asiana Group, leaves the courtroom at the Seoul High Court in Seocho District, southern Seoul, on Sept. 18 after receiving a suspended prison sentence of two years and six months in his appeal trial on charges of embezzling company funds and providing unfair support to affiliates worth more than 3 billion won ($2.2 million). [YONHAP]

Former Kumho Asiana Group Chairman Park Sam-koo received a reduced sentence Thursday after an appeals court overturned key convictions in a corruption case. Park had faced lower court charges of embezzlement and breach of trust involving more than 300 billion won ($216 million).

The Seoul High Court’s Criminal Division 2 quashed the lower court’s 10-year prison term and instead sentenced Park to two years and six months in prison, suspended for four years.

Several executives, including a former head of strategic management, surnamed Yoon, also saw their prison terms reduced to suspended sentences. Kumho Industrial, now Kumho E&C, was fined 200 million won.

Prosecutors indicted Park in May 2021 for allegedly using company funds to regain control of Kumho Industrial through Kumho, a special purpose company he wholly owned.

He was accused of withdrawing 33 million won from four affiliates in December 2015 to finance the purchase of Kumho Industrial shares, as well as causing losses to Asiana Airlines by selling its stake in Kumho Terminal to Kumho Corp. at a below-market price.

'Fully repaid funds'

Park Sam-koo, former chairman of Kumho Asiana Group, leaves the courtroom at the Seoul High Court on Sept. 18 after receiving a suspended prison sentence of two years and six months in his appeal trial on charges of embezzling company funds and providing unfair support to affiliates worth more than 3 billion won ($2.2 million). [YONHAP]

The appeals court ruled that Park’s embezzlement and breach of trust charges under the Act on the Aggravated Punishment of Specific Economic Crimes were unfounded.

The court said Park and other executives had specific and feasible repayment plans for the funds they used and fully repaid the money. It also found that the loans were backed by adequate collateral and conducted under ordinary terms.

The court likewise dismissed the claim that selling Kumho Terminal shares at 270 billion won caused corporate losses.

“The sale price reflected the fair value of the shares, or at least was not set at a significantly low level,” the judges said, citing a 2011 sale of the same shares for 255.5 billion won as a benchmark. It also found no loss from the sale of Asiana’s in-flight catering monopoly rights to Swiss Gate Gourmet Group for 133.3 billion won.

Fair trade violations upheld

However, the court upheld convictions for violations of the Fair Trade Act.

Park was found guilty of providing unfair support to Kumho by arranging for Gate Gourmet to acquire 160 billion won in convertible bonds without interest as a condition for the catering deal. From 2016 to 2017, nine Kumho affiliates also lent 130.6 billion won to Kumho on favorable terms without collateral.

“Park received undue benefits that maintained and strengthened his control of the group, while Kumho enjoyed favorable competitive conditions,” the court said.

A lower court in August 2022 had convicted Park on most charges, sentenced him to 10 years in prison and ordered him to be taken into custody. He was later released on bail in January 2023 while the appeal was pending.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY CHOI SEO-IN [[email protected]]