The former member of the music group Sugar, Hwang Jung-eum, stands accused of misappropriating nearly 4.3 billion won from corporate funds, with the prosecution advocating a 3-year custodial sentence.

The legal proceedings on the 21st revealed that the Jeju District Prosecutors' Office has petitioned for a 3-year prison term for Hwang in the concluding trial concerning her breach of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), presided over by Judge Lim Jae-nam at the Jeju District Court’s Criminal Division 2.

Hwang is accused of diverting approximately 4.34 billion won from organizational finances, including around 700 million won borrowed by Hunminjeongeum Entertainment. These funds were purportedly invested in cryptocurrency under the pretense of advance payments in the early months of 2022.

Reports indicate that roughly 4.2 billion won of the misappropriated sum was funneled into cryptocurrency, while the remaining funds were allocated for settling property and local taxes, among other liabilities.

The implicated entity is a family-operated business where Hwang holds a full 100% ownership stake, functioning as the sole artist represented by the firm.

Hwang has acknowledged all accusations and has reportedly restored the funds initially taken from Hunminjeongeum Entertainment by June 5, with relevant documentation submitted to the Jeju District Court as evidence of repayment.

Legal counsel for Hwang has appealed for mitigation, arguing, "The defendant’s investment was aimed at corporate growth. She lacked familiarity with financial accounting processes, assuming repayment would rectify the situation, which culminated in these charges. There are no additional victims, and full restitution has been made, thus we seek leniency."

Hwang's court sentencing is slated for 10 a.m. on the 25th of the subsequent month.