[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]
The founder of South Korea's major pizza chain, Mr. Pizza Korea (MPK) Group, has been indicted on embezzlement and other charges, prosecutors said, accusing him of privatizing his group for "self-satisfaction" using company funds.
Jung Woo-hyun, 69, became the first group head to be punished since President Moon Jae-in took office in May with a pledge to eradicate unfair business practices and stop big companies from abusing their dominant power.
Jung was charged with embezzlement, obstruction of duty, and unfair business activities. He denied any wrongdoing but resigned as group chairman in June, insisting his departure should not damage the group's normal business activities. He would stand trial with three other people, including his brother, who was indicted without detention on similar charges.
Prosecutors stressed Jung and his family had privatized 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.
MPK, 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. In March, it opened its second pizza outlet in Bangkok, capitalizing on growing popularity of Hallyu (Korean cultural wave).
Prosecutors insisted Jung's group provided expensive cheese to franchise partners through firms controlled by relatives. A pizza outlet operator in Incheon west of Seoul committed suicide in March, claiming he was the victim of retaliation by MPK for severing a contract.
reporter
Lim Chang-won
cwlim34@ajunews.com
