A member of the LG Group family has been slapped with the cuffs and slung into the clink for three years after being found guilty of stock manipulation and embezzlement.
The Supreme Court locked up Koo Bon-hyun, the nephew of LG honorary chairman Koo Cha-kyung, after he was found guilty of raking in around $11.7 million (13.9 billion won) ($11.7 million) of illegal profits by manipulating the stock price of Exa E&C – an electronic components and environmental company.
It is claimed he managed to do this by spreading false information about the company during the process of taking over a new materials company in 2007. At that time, he was serving as a chief executive of the company, which had no relation to LG.
The 45-year-old was also convicted of embezzling millions of dollars of company funds through accounting fraud.
However, Koo Cha-kyung may have to bite his tongue if he was thinking about having a word with his wayward nephew as LG is not a stranger to finding itself in a spot of bother.
Back in May the company, along with Samsung and Pantech, were slapped with a
combined fine of $40.1 million (45.3 billion won) after the South Korean Fair Trade Commission claimed the group plotted together to mark up the prices of mobile handsets.