On Tuesday afternoon, CJ Group chairman Lee Jae-hyun showed up at the Seoul High Court in a wheelchair, armed with a bulky winter coat, a muffler and a face mask.

It was the day of his retrial for embezzlement, breach of conduct and tax evasion. Much to his dismay, he was found guilty and handed a 2 1/2-year prison term and a 25.2 billion won ($21.2 million) fine. 

Lee was charged with creating a 620 billion-won slush fund by embezzling 160 billion won from the company coffers, thus dodging 54.6 billion won in taxes. Lee was also convicted of inflicting 39.2 trillion-won of damage on CJ Japan by using the company as a guarantor when purchasing a piece of private real estate in Japan. He has the option to appeal the verdict in the Supreme Court.

“Lee abused his power as the CJ chairman to increase his personal assets, which is a grave matter. We took into consideration that the law should be applied equally to all people, with no business tycoon becoming an exception,” the judges stated.

Lee refused to comment on the sentence.

But CJ Group later stated, “We are devastated to see him getting a prison term though it is obvious that the man cannot serve his term. The company management also suffers from a vacuum at the helm of the company. We will seek every way to tackle the problems.”

The sentence is little changed from the same court’s 2014 sentence to imprison the 55-year-old for three years ― which was rejected by the Supreme Court in September and sent back for rescaling of the terms. The country’s top court said that Lee’s financial benefit from the misdemeanor cannot be calculated, thus fails to constitute an economic crime that attracts a heavier penalty than breach of conduct.

The case, which was ignited by prosecutors raiding Lee’s office and residence in May 2013, has cost more than just a tarnished reputation.

During the three-year trial, Lee’s ailing health was made public, drawing much public attention.

In an appeal to bail its leader, CJ Group revealed that the eldest son of the late Lee Maeng-hee ― the eldest son of Samsung founder Lee Byung-chull ― has been suffering from Charcot Marie Tooth Disease, an inherited neurological disorder. In Aug. 2013, he received kidney transplant during the bail term due to renal failure.

And despite the mushrooming suspicion over the authenticity of the illness, the court granted Lee a discharge until March 2016, acknowledging the gravity of Lee’s condition.

With the progress of CMT disease causing weakness of the foot and lower leg muscles, alongside the side effects of the kidney surgery, Lee is reportedly staying at an isolated ward of Seoul National University Hospital in central Seoul. He was only granted permission for a short visit to his father’s memorial alter in Aug. 18 this year and had to miss the funeral.

“He was carried in a wheelchair and wept for a while, but didn’t have enough energy to mourn the loss of his beloved father,” a CJ insider said.

In 1993, at the age of 33, Lee Jae-hyun established CJ Group from what used to be a food-making unit of Samsung Group. Though his father Maeng-hee was virtually expelled from the family for having allegedly reported Lee Byung-chull’s wrongdoings to the government, the sugar-making department was spared for the eldest grandson of the family.

The former Citi Bank officer found a business opportunity in pop culture.

In 1995 his elder sister Mie-kyung invested in the establishment of Hollywood film production company DreamWorks. In 1996 CJ launched its cinema brand CGV, and later moved on to launch a series of cable channels focusing on entertainment programs.

Lee projected his dream of having people “visit a CJ building, shop for CJ foods, dine at CJ restaurants, watch movies at CGV, enjoy watching CJ TV, and sing along to K-pop.”

As of 2015, CJ Group has grown to become the country’s 20th-largest conglomerate, with 65 affiliates encompassing food and food services, bio and pharmaceuticals, entertainment and media, TV shopping and logistics, and construction.

But unfortunately, the hereditary disease may become a huge risk for the Lee family as well as for CJ Group.

According to sources, Jae-hyun’s sister and CJ vice chairwoman Mie-kyung is also suffering from CMT disease and has trouble in the operation of the company’s glitzy collaboration with Hollywood.

“CJ’s business has just kicked off. We hope both of them get better soon,” an anxious CJ worker said.

By Bae Ji-sook (baejisook@heraldcorp.com)