Hur Young-in, the chairman of bakery giant SPC Group, leaves the Seoul Central District Court, Feb. 2, after being acquitted on charges of ordering the dumping of affiliate shares to evade gift taxes. Joint Press Corps

A court of appeals on Friday upheld the acquittal of Hur Young-in, the chairman of the nation's largest bakery chain, SPC Group, in controversial stock trading among group affiliates that was seen by prosecutors as suspected breach of trust and tax evasion.

The Seoul High Court, confirming a ruling made by the Seoul Central District Court in February, found Hur not guilty of charges of committing breach of trust by ordering the alleged dumping of affiliate shares in 2012.

Hur was indicted for instructing group affiliates Paris Croissant and Shany to sell stocks of Mildawon, another SPC company producing flour, to SPC Samlip at 255 won ($0.19) per share in December 2012, a price far cheaper than the appraised 2011 price of 1,180 won and their 2008 acquisition price of 3,038 won.

Prosecutors suspected gift tax evasion purposes behind the deal, viewing the company's appropriate share price as 1,595 won. They claimed that the stock sale inflicted losses of 5.81 billion won on Shany and 12.16 billion won on Paris Croissant, while giving SPC Samlip proceeds of 17.97 billion won.

The appellate court said the stock price valuation method in question cannot be seen as illegal and thus it is difficult to view the stock sale as an act of breach of trust. The court also upheld the acquittals of former SPC Group President Cho Sang-ho and SPC CEO Hwang Jae-bok, who were also indicted in the same case.

Hur has been separately standing trial on charges of coercing bakers to quit their labor union. (Yonhap)