The prosecutors’ office said Wednesday that the labor penalty issued for former Daeju Group chairman Huh Jae-ho would be lifted following a controversy over the country’s labor penalty system.

“It has been decided that the sentencing of inmates to a working prison can be withdrawn,” the Supreme Prosecutors’ Office said.

The prosecution also said that Huh may be forced to pay the initial fine.

Under the country’s criminal law, defendants who fail to pay a fine are required to serve their term in a working prison for periods of less than three years.

In December 2011, the Supreme Court upheld an appellate court’s ruling to sentence Huh to 30 months in prison with a four-year stay of execution for tax evasion and embezzlement.

At the time, the court said Huh would be subject to 50 days of labor in prison if he was not able to pay a fine of 25.4 billion won ($23.5 million).

The system caused a public uproar earlier this month when it became known that if Huh served out 50 days of the labor penalty it would mean a per-day deduction from his fine of 500 million won.

By Choi He-suk (cheesuk@heraldcorp.com)