Prosecutors have indicted Kim Sang-chul (71), Chairman of Hancom Group, without detention on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes and embezzlement.
Kim is accused of conspiring with his younger son — then an internal director at HancomWITH — and the CEO of the crypto asset management firm Arowana Tech to falsely represent Hancom-owned “Arowana Tokens” as necessary for business purposes. They allegedly sold these assets and obtained roughly ₩9.6 billion worth of Bitcoin, which was then transferred to his son’s name and used for personal purposes.
In addition, Kim allegedly misappropriated approximately ₩5 billion in corporate funds by using them to purchase stocks under borrowed names and pay fictitious salaries to acquaintances between 2019 and 2022.
The Arowana Token was developed by HancomWITH, a blockchain subsidiary of Hancom Group, and once saw its price surge 1,075-fold just 30 minutes after listing, triggering strong suspicions of market manipulation. The token is now delisted.
Kim’s son and the CEO of Arowana Tech have already been sentenced to three years and two years and six months in prison, respectively.
Separately, Kim was fined ₩20 million in a lower court ruling and is currently appealing for violating capital market laws by failing to report changes in his stock ownership of a group affiliate.
In response to the allegations, Hancom released an official statement saying, “This is a personal matter involving Chairman Kim, and the company was not involved in the incident,” adding, “Ongoing projects and future plans are proceeding without disruption.”
