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This is a news blog for my Undergraduate Criminology class at Ewha University in Seoul, South Korea for Spring 2010.
Shuying Mei
ReplyDelete"Hwang Convicted of Embezzlement, Cleared of Fraud"
This article talks about a Korean stem cell researcher, who was well-known for his contributions to the field of stem cell research, being found guilty of embezzling state and private funds and illegally buying human eggs for his research.
Despite the large amount of economic cost incurred and the vast amount of social harm that his false breakthroughs could have caused as they were published in global research magazines, the punishment that he received seems to be much more lenient as compared to the punishments that are given to many of the criminals of street crimes in Korea. Not only did he get a suspended jail term, the presiding judge also reduced the length of his prison-sentence by only sentencing him to two years of prison when the prosecutors sought for a four-year jail term. The presiding judge even attempted to justify his decision by “citing Hwang's dedication to the development of Korea's biotechnology, his lack of a criminal record and deep remorse”.
The consequences of his test fabrications would have been more large-scale and more severe than many of the street crimes if future medical practices were based on his stem cell research results, yet the punishment that he received do not seem to match its potential social harm. Thus, this seems to show the differential treatment of South Korea’s law enforcement in which corporate and white-collared crimes are dealt with more leniently than the conventional street crimes, even though the economic and societal cost of corporate and white-collared crimes are generally greater.
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10-26-2009 18:20
[Hwang Convicted of Embezzlement, Cleared of Fraud]
Scientist Gets Suspended Jail Term
By Park Si-soo
Staff Reporter
Disgraced stem cell researcher Hwang Woo-suk was convicted Monday of embezzling state and private funds and illegally buying human eggs for his research, but was cleared of fraud charges.
The Seoul Central District Court gave the 56-year-old scientist a two-year prison sentence suspended for three years, ending a three-year, four-month saga that dates back to his indictment in 2006.
His lawyer said Hwang was unlikely to lodge an appeal. But the prosecutors are said to be planning to file an appeal, which means that a legal battle over Hwang's case will likely drag out.
Hwang reported false breakthroughs in human stem cell research and had them published in the journal Science and other global research magazines in 2004 and 2005.
However, when it was revealed by a Korean research team that he had fabricated the experimental results, Korea's reputation as a leading scientific country in stem cell research was literally "devastated."
The journal, Science, retracted his papers following the finding and still remains cautious of publishing papers by Korean scientists.
Prosecutors didn't try to penalize Hwang for his test fabrications, leaving that to the discretion of the science community.
The prosecution sought a four-year jail term, but Presiding Judge Bae Ki-ryul reduced it, citing Hwang's dedication to the development of Korea's biotechnology, his lack of a criminal record and deep remorse.
Once touted as a global stem cell pioneer and a rock-star-like national hero, the ousted Seoul National University professor was indicted in 2006 on charges of embezzling more than 2 billion won (then $2 million) of research funds from the government and two domestic companies ― SK Group and Nonghyup ― using what the court deemed "fabricated" papers published in 2004 and 2005 in Science.
ReplyDeleteTwo other charges related to whether he intentionally fabricated experimental results, and if he secured human eggs from donors in exchange for financial benefits, which is illegal in Korea.
"He embezzled nearly 830 million won of funds by money laundering with borrowed-name bank accounts," Bae said.
"The accused claimed the money in question was spent for research-related purposes. But there is a lack of evidence to back this up."
But the judge cleared Hwang of fraud charges related to money from the two private companies saying they sponsored the scientist without any expectation that they would benefit from the donation in the future.
"The funds were given to him voluntarily without any specific guideline on its usage," the judge said, meaning his private use of it is not punishable.
Hwang was also found guilty of buying the human ova.
"Under the law, any types of egg trade are banned. Hwang covered the costs of harvesting ova from the donors, which is illegal," the judge said.
Following the ruling, Hwang hurriedly left the court packed with nearly 200 of his supporters from around the country.
His lawyer, Yoo Chul-min, told reporters it's too early to decide whether to appeal the ruling. But the lawyer hinted that the scientist does not want further debate in the courtroom.
Hwang had been the only Korean scientist allowed to carry out research into human stem cells. But the government stripped him of his license in 2006, citing his "ethical problems."
With funds mostly from the private sector, he is now doing work on animal cloning at Sooam Biotech Research Foundation in Gyeonggi Province.
pss@koreatimes.co.kr
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http://www.koreatimes.co.kr/www/news/nation/2009/11/117_54275.html
Elizabeth Tang
ReplyDelete“Coffee shops cited by health officials”
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This article is telling us that the Korea Food and Drug Administration (FDA) found eighteen coffee shops in Seoul to have violated food safety regulations. Some of these coffee shops include some branches of big coffee chains such as The Coffee Bean and Hollys Coffee. The violations include using ingredients that have passed their expiration date and using ingredients which lack proper food labeling.
This is a good example of how corporate crime is more commonplace than we expect. It has been taken forgranted that the food we consume is safe and sanitary, especially more so for reputable food and beverage outlets. Even for something as low cost and high profit as premium coffee, the companies are willing to sacrifice the welfare of the society to reach their own corporate goals of profit generation. Worse still, these crimes are not heavily punished, and the FDA is only going to take ‘administrative measures’ against the shops which were found to be not complying with the proper food standards. This brings to mind the milk scandal which was uncovered in China in 2008, where the effects of tainted milk were far reaching and hurt the people very much. It seems that only when things go terribly out of hand do governments (or the respective organizations) take serious action against food and beverage companies, while regular basis checks, although effective in ensuring compliance to some extent, do not actually serve much purpose except to inform the public.
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Eighteen coffee shops in Seoul, including some branches of The Coffee Bean and Hollys Coffee, were found to have violated food safety regulations, the Korea Food and Drug Administration said yesterday.
Violations include using ingredients that have passed their expiration date and using ingredients which lack proper food labeling.
The Korea FDA said that it conducted a food safety check on 70 coffee shops in Korea and found the 18 to have violated safety rules. It plans to request administrative measures against the shops.
Six branches of The Coffee Bean were included in this list, five of which sold a grapefruit juice that did not include proper Korean labels. Out of the three Tom N Toms Coffee shops included, one branch in Gangnam District was found to have stored ingredients in an “unsanitary” room which had spiderwebs and dust.
Two Hollys Coffee branches allegedly violated safety regulations. One branch in Songpa was cited for using expired Nesquik mix. The other Hollys Coffee branch in Jung District was found by the FDA to have used a lemon powder mix that lacked proper food labeling.
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http://joongangdaily.joins.com/article/view.asp?aid=2918405
Shaline Tan Yen Ling
ReplyDeleteHyundai chairman's prison term suspended
The above article has clearly shown an avoidance of receiving punishment due to the relations of the rich and powerful with the government. In accordance to the chapter of “Corporate Crime and Higher Immorality”, this article has given us a clear idea of opposing criminal myths. It has shown that corporate crimes are not accidents or oversights or unintended, and that current laws and enforcements are not adequate to deal with the problems. What is especially insidious is the direct relationship between major corporate criminals and government. “A lower court had sentenced Chung in February to three years for embezzling more than $100 million from the company to set up a slush fund. Prosecutors say the fund was used to pay lobbyists to gain government favors and for personal use.” By embezzling huge amount of funds to develop good relations with the government is a kind of unethical manner towards the citizens of the Republic of Korea. Chung Mong Koo even “asked the court to be allowed to avoid prison to devote his energies to South Korea’s biggest automaker to contribute to the country’s economy.” The court relented in the name of having to revive the country’s economy by removing charges from Chung so that he can concentrate on building a more powerful automobile sector for Korea and the court states that “the tycoon is too important to South Korea’s economy to go to jail for embezzlement.” In my opinion, corporate crimes in Korea often go unpunished due to the culture of having family conglomerates (chaebols). We would not know for sure if Samsung or Hyundai has anymore to come as many cases of corporate crimes exposed are only at the thinnest tip of the iceberg.
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http://www.msnbc.msn.com/id/20620766/ns/business-world_business/page/2/
Shaline Tan Yen Ling
ReplyDeleteHyundai chairman's prison term suspended
Korean court says Chung Mong-koo too important to serve time
SEOUL, South Korea - An appeals court suspended a three-year prison sentence for Hyundai Motor Co. Chairman Chung Mong-koo on Thursday, saying the tycoon is too important to South Korea’s economy to go to jail for embezzlement.
A three-judge panel at the Seoul High Court suspended the sentence for five years, meaning that the 69-year-old head of the nation’s biggest automaker will avoid prison as long as he keeps a clean record during that period.
A lower court had sentenced Chung in February to three years for embezzling more than $100 million from the company to set up a slush fund. Prosecutors say the fund was used to pay lobbyists to gain government favors and for personal use.
Presiding Judge Lee Jae-hong told the packed courtroom that Hyundai Motor has great influence over the nation’s economy and Chung, its hands-on leader, is the symbol of the company.
“I am also a citizen of the Republic of Korea,” Lee said. “I was unwilling to engage in a gamble that would put the nation’s economy at risk.”
Chung, free on bail after spending two months in jail after his arrest in April last year, has been actively running the company, which ranks as the sixth-largest automaker in the world and has ambitions to become the CEOfifth-largest automaker by 2010.
Lee said he struggled with the decision, originally set for July 10, and postponed it twice, saying the court needed more time. He said he sought the views of various people, including other judges, prosecutors, lawyers, journalists and “even taxi drivers and restaurant employees.”
In his appeal, Chung asked the court to be allowed to avoid prison to devote his energies to South Korea’s biggest automaker to contribute to the country’s economy.
Prosecutors sought a six-year prison term, saying the original decision was not harsh enough for the crime.
The court also ordered Chung to fulfill a promise he made last year to donate 1 trillion won ($1.1 billion) of his personal assets to society and told him to do community service.
It was not immediately clear whether prosecutors planned to appeal to the Supreme Court. A lawyer for Chung said earlier Thursday that the top court only hears cases involving guilt or innocence, suggesting that an appeal regarding the sentencing would be unlikely.
Kim Kyung-soo, a spokesman for the Supreme Public Prosecutors’ Office, said Chung’s conviction stands.
“It’s not that he was found innocent,” Kim said. “Therefore, it is not appropriate for us to comment on the weight of the sentence.”
But Park Wan-gi, an activist with the Citizens’ Coalition for Economic Justice, denounced the ruling, saying it reinforced the perception that the rich can avoid jail.
In a similar case, the Seoul High Court in 2005 suspended a three-year prison term for accounting irregularities handed to Chey Tae-won, CEO and chairman of South Korea’s leading oil refiner, SK Corp., now SK Energy.
Chung has pushed Hyundai Motor to expand aggressively overseas, building factories in China, India, Turkey and the United States, with another one currently under construction in the Czech Republic.
Hyundai Motor affiliate Kia Motors Corp. has done the same, manufacturing cars in China and Slovakia and building another plant in the U.S. state of Georgia, near Hyundai Motor’s factory in Alabama.
Last year, Hyundai and Kia accounted for about 72 percent of South Korea’s automobile exports. Autos account for 13 percent of the country’s total exports.
Hyundai welcomed the decision.
“We can now devote our full energies to addressing the numerous challenges that face us and building a global brand,” it said in a statement. (...)
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ReplyDeleteAgnes Seul-Gi Kang
ReplyDeleteKorean products give more than what was paid for
Due to faulty manufacturing machines and procedures, various Korean products were found to include many pieces of metal and also a dead rat in one.
Nongshim-Kelloggs was found to have an 22 centimeter long metal stick in their Corn Frost cereal, and a 4.5 centimeter metal lattice in their Special K cereal; probably a piece of machinery that was not inspected properly.
What made this issue more controversial and more applicable to corporate crimes was that a regulator in a chocolate company thought there was no need to recall the faulty products because they believed it would pose “little risk for damaging teeth”.
Obviously, their breach and violation of safety regulations has brought about great discomfort amongst their consumers, but also their reputation. Disregarding safety regulations and being careless about production causes such mistakes, resulting in a great amount of effort, time and money of not only the company, but also of the KFDA, to carry out recalling procedures and compensating for the mistakes.
I think it is most important for food industries to pay particular attention in their OSHA and safety regulations as it affects all people of all ages, and recalling faulty products is extremely time consuming and costly. Thus manufacturing procedures, machinery and employees must be checked and rechecked.
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Consumers found assembly line pieces, both metal and plastic, in three brands of Nongshim-Kellogg’s cereals, and the Korea Food and Drug Administration said on Thursday it ordered the manufacturer to recall over 12,000 boxes of cereal
...
The recall follows the KFDA’s announcement Monday that it ordered the nation’s largest discount store, E-mart, to recall 1,080 bags of bread crumbs after it received a complaint from a customer on April 27 that she found what appeared to be a dead mouse in the product. The bread crumbs (expiration date Sept. 16, 2010) are sold under the E-mart brand and manufactured by Samyang Milmax’s Asan plant. The KFDA is conducting an inspection of the plant. Other products made in the plant have been banned from sale.
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http://joongangdaily.joins.com/article/view.asp?aid=2920500