An appeals court on Tuesday upheld a lower court ruling to dismiss a South Korean business tycoon who was accused of violating the accounting law for years.
The Securities and Futures Commission under the Financial Services Commission ordered Hyosung Group to dismiss its chairman Cho Suk-rai, 81, in July 2014 over allegations the conglomerate made official announcements based on false financial statements from 2006 to 2013.
|In this file photo, Cho Suck-rai, chairman of Hyosung Group, leaves a Seoul court on Jan. 15, 2016, after his sentencing for tax evasion. The 81-year-old tycoon was sentenced to three years in prison for dodging some 135.8 billion won ($111.8 million) in taxes from 2003-2008 and ordered to pay 136.5 billion won in fines. The court, however, waived imprisonment because of Cho's age and failing health. (Yonhap)|
The group appealed the decision to the Seoul Administrative Court, but it ruled against Cho in July last year and the Seoul High Court upheld the decision Tuesday.
"Those who bought Hyosung's stocks would have made the investment decision based on its financial statements that included misinformation," the lower court earlier said.
Cho was sentenced to three years in prison and some 135.8 billion won ($121 million) in fines in January last year for cooking the books and evading taxes from 2003 to 2008. He was not taken into custody due to health reasons. (Yonhap)