Prosecutors Seek 15-Year Prison Sentence for Former Daewoo Shipbuilding & Marine Engineering Construction Chairman Yongbin Kim

Up to 28.5 Billion Won in Illegitimate Gains During Paid-in Capital Increase Process
Prosecutors Also Seek 142.85 Billion Won Fine and 28.5 Billion Won Forfeiture

Prosecutors have demanded a heavy sentence for Yongbin Kim, former chairman of Daewoo Shipbuilding & Marine Engineering Construction, who was indicted on charges of engaging in fraudulent transactions during a paid-in capital increase process at Korea Corporation (now MPC Plus) and making illegitimate gains worth tens of billions of won.

On October 16, 2023, Yongbin Kim, former chairman of Daewoo Shipbuilding & Marine Engineering Construction, is entering the Seoul Southern District Court for a warrant hearing. Photo by Yonhap News.

At the sentencing hearing held on September 2, 2026, under the Criminal Division 12 of the Seoul Southern District Court (Presiding Judge Park Jongryul), prosecutors requested that the court sentence former chairman Kim, who was indicted and detained on charges of violating the Capital Markets Act, aggravated breach of trust and embezzlement under the Special Economic Crimes Act, and occupational embezzlement, to 15 years in prison, a fine of 142.85 billion won, and a forfeiture of 28.57 billion won. The prosecution explained, "Please consider the fact that former chairman Kim was the main perpetrator, the considerable scale of the illicit gain, and that he continues to deny the charges and shows no remorse."

Prosecutors also sought five-year prison sentences for two co-defendants: Seong, the former CEO of Korea Corporation, and Shin, the former CEO of Daewoo Shipbuilding & Marine Engineering Construction. They requested a fine of 85.71 billion won for Seong and a fine of 142.85 billion won for Shin.

In addition, for other accomplices who were former executives and employees of Korea Corporation and Daewoo Shipbuilding & Marine Engineering Construction: Kim was recommended to receive four years in prison and a fine of 85.71 billion won, while Jang was recommended four years in prison. For Jeong, Lee, and Lim, prosecutors requested three years in prison and a fine of 85.71 billion won each. For Yoon and Cho, they asked for two years in prison and a fine of 500 million won each.

Kim and others were brought to trial for allegedly falsifying a 27.9 billion won paid-in capital increase as legitimate in December 2018 by borrowing money from a private lender and temporarily depositing it as capital, then withdrawing it to repay the loan. They also allegedly made false disclosures claiming entry into the bio business. Prosecutors believe that Kim and his associates gained up to 28.5 billion won in illegitimate profits through these fraudulent activities.

Kim is also accused of causing damages to the company and misappropriating company funds. Prosecutors determined that, in order to inflate the value of the bio business, Kim and his associates caused Korea Corporation to purchase shares of an unlisted company with limited value for 21.1 billion won. It was also found that, in January and February 2020, 5 billion won of funds from Korea Corporation and its subsidiaries were used to repay loans that had been deployed as funds for the capital increase.

Kim is further accused of embezzling about 400 million won by using Daewoo Shipbuilding & Marine Engineering Construction’s corporate credit cards, two corporate vehicles, and luxury fitness center memberships for personal purposes, and by registering bogus employees to pay them salaries. In addition, Kim faces additional charges of failing to pay approximately 4.75 billion won in wages and severance for 406 workers at Daewoo Shipbuilding & Marine Engineering Construction. Prosecutors found that Kim continued to use company funds for personal gain even while wage arrears persisted.

The court has scheduled sentencing for Kim and the other defendants on December 16, 2026, at 2 p.m.

Meanwhile, Kim was indicted and taken into custody in April 2023, but was released on bail in September of the same year.

This content was produced with the assistance of AI translation services.