According to a report from South Korean media N.News on April 25th, Guy Andrew Meldrum, former CEO of British American Tobacco Korea, who was accused of falsely declaring and smuggling a large quantity of cigarettes out of the country on the day before a tax increase to evade taxes, was acquitted by the Seoul High Court in his second trial.
The Seoul High Court, Criminal Division 5, handed down the above-mentioned judgment against the former CEO of BAT for violating the Specific Crimes Aggravated Punishment Act (tax evasion). The court stated, "In this case, although property transfer and cigarette transportation were carried out separately, it cannot be concluded that it was a sham transaction." They emphasized, "Without being able to determine the defendant's intentions of tax evasion and other reasons, the acquittal in the first trial is acceptable."
According to reports, on December 31, 2014 (the day before the cigarette tax increase), Mel Drum was accused of smuggling 24.63 million packs of cigarettes out of the South Gyeongsang Sichuan cigarette factory and making false declarations. He was sentenced in April 2019. Prosecutors believe that this action exploited the fact that cigarette taxes are levied based on the number of cigarettes at the time of factory delivery.
Prosecutors believe that he is suspected of evading taxes totaling 503 billion South Korean won ($36.51 million), including 146 billion South Korean won ($10.59 million) in national personal consumption tax, 248 billion South Korean won ($18 million) in local tobacco consumption tax, and 109 billion South Korean won ($7.91 million) in local education tax. Despite being acquitted in the first trial, prosecutors have continued to express doubts about this.
It is reported that Meierdrum had left the country before the investigation by the National Tax Bureau, and the first trial did not begin until April of last year. The former production and logistics manager of the company, who was also being tried in the same case, was acquitted by the Supreme Court in November 2022.
We welcome news tips, article submissions, interview requests, or comments on this piece.
Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
Notice
1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.
2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.
3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.
4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.
Copyright
This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.
For copyright-related inquiries, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.
We welcome any corrections or feedback. Please contact us at: info@2firsts.com
