Kim Sang-cheol, chairman of the Hancom Group, stood trial for allegedly creating a ₩9.6 billion ($7 million) slush fund through cryptocurrency transactions, firmly denying all charges during his first court appearance. Prosecutors allege that Kim covertly sold cryptocurrency issued by a Hancom affiliate and funneled the proceeds for personal use.
According to the indictment, Kim orchestrated the sale of “Arowana Token,” a cryptocurrency issued by Hancom With, from December 2021 to October 2022. By disguising these sales as legitimate business transactions, he allegedly secured approximately ₩9.6 billion in Bitcoin and other digital assets. These assets were later transferred to a digital wallet under his son’s name and partially sent overseas for private use.
Kim is also accused of misappropriating an additional ₩500 million between 2019 and 2022 through the purchase of stocks under borrowed names and by issuing false salaries to acquaintances.
During the first hearing, Kim’s legal team strongly rejected all charges, stating, “We deny the prosecution’s claims entirely. As we only recently obtained the full case records, a more detailed response will be provided at the next hearing.” The day’s proceedings focused largely on scheduling, with no substantial arguments presented yet.
Kim is also involved in a separate legal case for violating the Capital Markets Act by failing to report changes in share ownership between 2019 and 2020. He was previously fined ₩20 million and is currently appealing the decision.
The next trial is set for July 15. Legal observers note that the case could become a landmark for how cryptocurrency transactions are treated in corporate finance and governance, especially regarding transparency and personal use of digital assets.
