Fake Documents Used for 90 Billion Won Loan... Solar Power Plant Construction Company CEO Sentenced to 10 Years in Prison

Seoul Southern District Court [Photo by Lee Yul-lip]

A solar power plant construction contractor, accused of forging documents to obtain a large loan and embezzling company funds, has been sentenced to prison in the first trial.

On the 29th, the Criminal Division 15 of the Seoul Southern District Court (Presiding Judge Roh Yu-kyung) sentenced Mr. Jang (45), the CEO of a solar power plant construction company, who was indicted on charges of fraud and embezzlement under the Act on Special Cases Concerning the Punishment, etc. of Economic Crimes, and forgery and use of private documents, to 10 years in prison.

The court stated, "The defendant, fully aware of the company's situation, used his position to forge and submit documents, deceiving the asset management company." The court added, "Since he had no ability or intention to proceed with the construction, his actions are considered fraudulent."

Mr. Jang is accused of defrauding a solar power fund management company of 91.18 billion won by falsifying the progress rate (construction progress) and forging supervisory review opinions from June 2020 to December of the following year.

He is also accused of using approximately 8 billion won of company funds for personal use, such as purchasing virtual assets.

It was revealed that Mr. Jang recklessly expanded his business and increased sales by taking advantage of receiving half of the construction costs as an advance payment.

It is understood that he embezzled company funds by "rolling over" advance payments to cover business rights development costs and financial expenses when his financial situation worsened due to the COVID-19 pandemic and lawsuits filed by residents near the construction site opposing the solar power plant.