South Korean star Hwang Jung-eum sentenced over $3M crypto case

A South Korean court handed K-Drama actress Hwang Jung-eum a suspended prison sentence for embezzling more than $3 million from her agency to make crypto investments. 

According to Yonhap News, the sentence was delivered on Thursday at the Jeju District Court. Hwang was found guilty of misappropriating more than 4.2 billion Korean won from a family-run talent agency she owned. 

Prosecutors had indicted the 39-year-old actress under Korea’s Act on the Aggravated Punishment of Specific Economic Crimes, a statute that imposes heavy penalties in major fraud cases.

Hwang handed suspended sentence and will not serve jail time

A Jeju court judge issued Hwang a suspended sentence, meaning she will not have to serve immediate prison time if she does not commit any crime in the next four years. 

Prosecutors had originally sought a sentence of three years in jail. Still, the court said because of her repayment of the misused money and no prior criminal history, she did not deserve a jail sentence.

Hwang pleaded guilty to diverting approximately 4.2 billion won into crypto investments around 2021. She said she was encouraged by an acquaintance who recommended crypto as a means of growing company assets. The rest of the funds were reportedly used for property-related expenses and paying local taxes through credit card payments.

“I sincerely apologize for causing concern over this shameful matter,” Hwang said in a statement issued through her new agency, Y.One Entertainment. “I made the investment in hopes of growing the company, but it was a hasty and immature decision.”

The K-Drama actress insisted she did not fully understand cryptocurrency investments at the time, but was assured they could increase her agency’s financial resources.

The 40-year-old actress’s legal team contended that the diverted funds did not constitute embezzlement in the traditional sense because they came from her own earnings accrued from her career. 

“The agency’s profits stem from the defendant’s work, so they can be seen as rightfully belonging to her,” her attorney said during Thursday’s proceedings. He also mentioned that Hwang had to hold the tokens in her name because the agency was not allowed by law to hold digital assets directly.

Case causes public fallout with agencies and broadcast edits

Hwang debuted in 2002 as a member of the idol group Sugar before leaving the music industry to focus on acting. Over the past two decades, she appeared in several well-received television dramas, including Kill Me, Heal Me and She Was Pretty.

The scandal has done a number on the High Kick Through the Roof actress’s public image, causing Broadcaster SBS Plus to edit her out of the final episode of its reality series, Because I’m Single aired last Tuesday. Producers said her video segments and on-camera commentary were removed or minimized following her courtroom admission.

Just days after its release, the health drink manufacturer Daesang Wellife Nucare removed all advertisements featuring Hwang. DWN cited “changes in internal schedules” as the reason for the sudden cancellation of an online event and the removal of promotional materials from its official social media accounts.

Hwang’s rehabilitation continues, and repayments began before the court ruling

The Korean actress had already begun repaying the embezzled funds. She reportedly sold the crypto holdings to cover part of the amount and is preparing to liquidate real estate assets to settle the remainder. 

A second hearing is scheduled for August, when the Jeju district court will review details of the repayment program and her compliance with authorities in the matter.

Hwang will face immediate imprisonment under the court’s order if she commits another offense during the four-year suspension period.

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