[Yonhap Photo]
SEOUL, Jan. 23 (Aju News) -- The founder of South Korea's major pizza franchise, Mr. Pizza (MP) Group was released from prison Tuesday after he received a suspended jail sentence and 200 hours of community service for causing losses to shareholders and pizza outlet operators.
A Seoul court sentenced Jung Woo-Hyun, 69, to three years in prison on conviction of embezzlement and breach of trust, with a stay of execution for four years. MP Group was slapped with a fine of 100 million won (93,000 US dollars).
Prosecutors accused Jung and his family of privatizing the group to run it like a kingdom for "self-satisfaction" and leading a fancy life with company funds. Relatives are suspected of getting paid salaries with no actual work. Jung resigned as group chairman but denied any wrongdoing.
The court found Jung guilty of embezzling company money to provide housekeeping service for his relatives. He was also convicted of getting two companies, owned by his younger brother, into MP Group's cheese circulation process, allowing the brother to take a so-called "cheese-toll".
Prosecutors accused Jung of interrupting businesses operated by former MP Group franchise owners by controlling the supply of cheese and sauce. The court refused to accept the accusation, citing lack of evidence, and suspended Jung's sentence, saying he took enough time for self-examination during his six-month detention.
MP, founded in 1990, is a restaurant group based on a handmade muffin and coffee franchise, Italian buffet restaurants, and a premium pizza chain with hundreds of outlets at home and abroad. The group has expanded its presence in Asia, capitalizing on growing popularity of Hallyu (Korean cultural wave).
Jung's case received widespread attention because President Moon Jae-in, a liberal leader, pledge to eradicate unfair business practices and stop big companies or family-run conglomerates known as chaebol from abusing their dominant power.
reporter
Park Sae-jin
swatchsjp@ajunews.com
