S. Korean court upholds sentence in bribery case
September 5, 2008
SUWON, South Korea — A South Korean appellate court on Wednesday let stand the sentence imposed earlier this year against Jeong Gi-hwan, who was accused of bribing AAFES officials so his Internet company could do business on U.S. military installations on the peninsula.
Jeong, chief executive of Samsung Rental Corp. Ltd., also known as SSRT, was sentenced Jan. 30 in Suwon District Court to pay a fine of 10 million won (about $10,600), and SSRT was fined 20 million won (about $21,200).
Jeong appealed the sentence, contending it was too harsh.
Prosecutors filed an appeal of their own, asking that Jeong receive a stiffer sentence.
A three-judge appellate panel denied both appeals.
Chief judge Choi Jae-hyeok said Jeong’s sentence was justified in light of the evidence presented during his district court bribery trial.
During that trial the court heard testimony from former SSRT executives that Jeong had paid two AAFES officials $168,000 to help SSRT win the AAFES contract and later to keep the company out of trouble with AAFES headquarters over mounting complaints of poor service and price gouging.
Action in the investigations of the two now-former AAFES officials remains pending before U.S. federal prosecutors.
SSRT’s contract with AAFES has since been transferred to LG Dacom.