Prosecution: "Investment Review Requested Due to Kim Bong-hyun's Solicitation"
Lee Sang-ho's Side: "It Was Merely a Simple Introduction"
[Asia Economy Reporter Yoo Byung-don, Intern Reporter Kim Dae-hyun] Lee Sang-ho (55, indicted in custody), former regional chairman of the Democratic Party of Korea in Busan Saha-eul, and the prosecution engaged in a legal battle over Lee’s request to the Korea Specialty Construction Mutual Aid Association to consider investing in a specific company.
At the trial of Lee held on the afternoon of the 30th under the jurisdiction of the Criminal Division 13 of the Seoul Southern District Court (Presiding Judge Shin Hyuk-jae), the prosecution intensely questioned Mr. A, who worked as the head of the alternative investment team at the Korea Specialty Construction Mutual Aid Association, about the circumstances when Lee made the investment review request.
Mr. A testified, "Around April 2018, I received a request from Lee, who was an auditor of the association, to review the acquisition of Interbulls CB (convertible bonds). During the two years I worked as the head of the alternative investment team, Lee was the only auditor who personally requested an investment review."
Interbulls was acquired by former chairman Kim Bong-hyun in July 2018 and subsequently changed its name to the current Star Mobility.
Mr. A also testified, "I saw Lee together with Kim Bong-hyun in the audit office."
He added, "After review, it was judged that the investment was inappropriate, so I conveyed the refusal to Lee. Usually, opinions are delivered in writing, but since this case was requested by Lee, I reported it verbally."
Lee was indicted on charges including breach of trust and bribery for receiving 30 million won himself and arranging for his younger brother to receive 56 million won as a reward after being solicited by former chairman Kim Bong-hyun for investment from the Korea Specialty Construction Mutual Aid Association.
The prosecution concluded that despite the investment not materializing, Kim gave money with a quid pro quo considering Lee’s influence.
Lee’s side rebutted that the investment review request was merely a simple introduction.
Lee’s defense attorney emphasized, "There was no statement made to Mr. A requesting a positive conclusion during the review request. It was a simple introduction, not a recommendation or instruction."
Lee himself stated during direct examination, "It was not an investment order but a request to 'please take a look at this product.' When I was told the investment was difficult, I asked them to politely refuse so as not to offend the other party, and I thought that was the end of it."
Meanwhile, former chairman Kim, who did not attend last week’s trial, appeared in court as a defendant on this day and denied the indictment that he gave money to Lee as a reward for the solicitation.
Kim argued, "There is no clause in the association’s internal regulations that prohibits deciding investment items based on recommendations or introductions. It was simply a request to review the investment without explicit or implicit pressure, so there is no problem."
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