December 12, 2024

• 

SPC Group Chairman Hur Young-in (SPC Group)

SPC Group Chairman Hur Young-in has been cleared of tax evasion charges in a second trial involving controversial stock trading among group affiliates.

The Supreme Court ruled on Thursday, declaring Chair Hur not guilty. Former SPC Group President Cho Sang-ho and current SPC CEO Hwang Jae-bok, who were co-defendants in the case, were also acquitted.

Hur faced allegations of selling Mildawon stocks, another SPC company producing flour, at lower prices to SPC Samlip in December 2012. The stocks were formerly held by SPC affiliates Paris Croissant and Shany during a December 2012 sale to SPC Samlip.

At the time, each share was sold at 255 won ($0.18), significantly lower than their estimated value of 1,180 won in 2011 or the acquisition price of 3,038 won in 2008. Prosecutors argued that these transactions enabled SPC's founder to evade up to 7.4 billion won in gift taxes over the past decade, while causing financial losses of 5.81 billion won to Shany and 12.16 billion won to Paris Croissant.

In February, Hur was acquitted in the first trial, due to insufficient evidence, but prosecutors appealed the decision. In September, the Seoul High Court also cleared Hur of tax evasion charges.

The court reaffirmed its position, stating that it was difficult to deem the valuation method for Mildawon shares illegal. "It is challenging to classify this as an act of breach of trust or to conclude that the defendants conspired with deliberate intent," the court explained. The prosecution's second appeal was dismissed by the court.

By No Kyung-min (minmin@heraldcorp.com)