Executive Summary
- Prosecutors demanded an 8-year prison sentence for Yu Hyuk-ki regarding embezzlement charges.
- The defendant is the second son of the late Yoo Byung-eun, the former chairman of the Sewol Ferry operator.
- Yu was repatriated from the U.S. in 2023 and faces accusations of collecting funds under false pretenses.
- Sentencing is scheduled for February 12 at the Incheon District Court.
South Korean prosecutors have requested an eight-year prison sentence for Yu Hyuk-ki, the second son of the late Yoo Byung-eun, former chairman of the Sewol Ferry operator Cheonghaejin Marine, on charges of embezzlement. The sentencing demand was made during a hearing at the Incheon District Court, presided over by the 14th Criminal Division under Judge Son Seung-beom.
According to legal reports emerging from the hearing on the 12th, prosecutors argued that the 52-year-old defendant bore significant responsibility for the financial mismanagement of the family-run conglomerate. In addition to the prison term, prosecutors have requested the court to confiscate approximately 2.5 billion Korean won. The prosecution stated, “As the successor to the late Yu Byung-eon, Yu was the mastermind behind the management corruption, and the illicit gains were enormous,” emphasizing that the gravity of the crime warranted a severe penalty.
The indictment alleges that between March 2008 and March 2014, Yu collaborated with representatives of affiliated companies to embezzle funds under various pretexts, including trademark usage fees, management consulting fees, and photography fees. Investigators claim Yu received these payments effectively as “tribute” without performing actual consulting work. The funds were reportedly funneled into personal accounts or overseas entities and subsequently used to purchase international real estate, luxury vehicles, and designer goods, as well as to fund his father’s photography exhibitions.
This legal action follows a lengthy international process. After the 2014 Sewol Ferry disaster, which prompted a massive investigation into the Yoo family’s management of Cheonghaejin Marine, Yu was forcibly repatriated from the United States in August 2023. He had been a key target in the probe regarding the de facto controlling shareholders of the ferry operator.
Judicial Proceedings
The sentencing hearing for Yu Hyuk-ki, scheduled for February 12 at the Incheon District Court, represents a significant chapter in the decade-long legal aftermath of the Sewol Ferry disaster. The prosecution’s demand for a heavy sentence reflects a continued judicial focus on corporate accountability and the recovery of illicitly obtained assets linked to the tragedy’s background. As the court deliberates, the case underscores the complexities of prosecuting cross-border financial crimes and the prolonged nature of recovering assets hidden through intricate corporate structures. It is important to note that all individuals are presumed innocent until proven guilty in a court of law.
