Former Minister Cho's Fifth Cousin's Trial Presents Text Message Evidence Between Jeong Gyeong-sim and Kim Kyung-rok, Jeong Gyeong-sim and Cho Kuk
[Asia Economy Reporter Yoo Byung-don] Evidence showing that Jeong Gyeong-sim, a professor at Dongyang University and wife of former Minister of Justice Cho Kuk, consulted with Cho before investing in a private equity fund managed by Coring Private Equity (Coring PE) was presented in court.
On the 20th, the prosecution disclosed text messages between Jeong and her asset manager, private banker (PB) Kim Kyung-rok, during the trial of Cho’s fifth cousin Jo Mo at the Seoul Central District Court Criminal Division 24 (Presiding Judge So Byung-seok).
According to the prosecution, in May 2017, when Cho was appointed Senior Secretary for Civil Affairs and was required to sell stocks or place them in a blind trust, Jeong discussed with Kim ways to avoid this.
When Kim suggested finding an investment destination where a blind trust could be established, Jeong replied via text message, "I will ask my husband and get back to you."
The prosecution pointed out, "This indicates that there was consultation with former Minister Cho."
High-ranking public officials and their spouses must sell stocks or place them in a blind trust if their holdings exceed 30 million KRW to ensure fairness in public duties.
The prosecution believes that despite knowing this, Jeong took the lead in discussing investing in the private equity fund 'Blue Core Value Up No.1' managed by Coring PE when meeting Jo in July 2017. They also emphasized that Cho’s claim that he was unaware of the private equity fund investment is false.
The prosecution also presented text messages exchanged between Cho and Jeong in May 2018 to prove that Jo helped Jeong evade taxes.
According to these messages, Jeong informed Cho that she was going to discuss with a tax accountant after being assessed 22 million KRW in comprehensive income tax due to earning tens of millions of KRW from a false consulting contract with Jo.
Specifically, when Cho received the news about the comprehensive income tax, he replied, "That's an enormous amount!" and when Jeong texted back, "I might have to take out a loan ㅠㅠ," Cho responded with "ㅠㅠ," the prosecution claimed.
The prosecution stated, "Jeong had her children invest in the private equity fund to reduce inheritance tax burdens," and added, "This occurred after Cho’s appointment as Senior Secretary for Civil Affairs, raising questions about the appropriateness of the act."
They further noted, "The defendant needed funds to operate Coring PE and the fund, and saw the investment of money from powerful figures such as the Senior Secretary for Civil Affairs as a great opportunity," adding, "Jeong was desperate for stock disposal and new investment destinations following her husband’s appointment."
They continued, "Investing in a private equity fund managed by a family member reduces the risk of external exposure and can also solve inheritance issues," and "This aligned interests to disguise the investment commitment amount, establishing a conspiratorial relationship."
The prosecution said, "Former Minister Cho must have known that the defendant made payments to Jeong under a false consulting contract," and "This period was also when he was serving as Senior Secretary for Civil Affairs."
The defense argued that the prosecution was overly focused on background explanations unrelated to the case, but the court responded, "We do not yet consider them completely irrelevant."
However, the court expressed concern about how to handle the fact that although Jeong and others are accomplices of Jo, they are unable to exercise their right to defense.
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