The Supreme Court of South Korea has confirmed a sentence of 3 years and 6 months in prison for Lee Soo-hong's older brother, who embezzled approximately 6.17 billion KRW from the management company that oversees Lee Soo-hong's entertainment career. This ruling stems from charges filed under the Aggravated Punishment of Specific Economic Crimes Act. The court also upheld a sentence of 1 year in prison, with a 2-year probation for the brother's wife, who was also implicated in the case. The final verdict reflects the serious nature of the crime and the court's view on the punishment proportionality designed to curb economic crime in the entertainment industry.

From 2011 to 2021, Lee's brother managed two entertainment agencies while mishandling the company's funds, primarily using Lee Soo-hong's earnings from his television appearances, which formed the main source of income. The first trial had initially sentenced him to 2 years in prison, but the appellate court increased the sentence due to the severity of the embezzlement, concluding the brother had illegally utilized company funds for personal matters, including falsifying employee wages.

In the final ruling, the Supreme Court rejected Lee's brother's claims that the sentencing was too harsh and dismissed the arguments made by his wife regarding her non-involvement in the corporate misconduct, reinforcing the court's stance on the necessity of accountability in financial crimes. This case not only highlights the challenges within the entertainment business but also serves as a cautionary example for similar industries in South Korea.