[Seocho-dong Legal Story] The 'Their Own Cartel' That Angers the Entire Nation... The Legal Community We Must Not Forget

Unearned Income of the Privileged Class
Starting with the Cho Kuk Family's Admission Scandal
Recently Passing the Baton to Daejang-dong
Legal Community Closely Watching Related Investigations
Expectations for Policies of Daejeon Candidates

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The protagonist Seong Gi-hun (played by Lee Jung-jae) in the Netflix drama "Squid Game" earns 100,000 won by playing the game of ttakji with the Squid Game salesman (played by Gong Yoo) at a subway station. If he flips the opponent's ttakji, he earns 100,000 won. If his own ttakji is flipped, he gets slapped. The 100,000 won was income he painfully earned after receiving several slaps and winning once. Gi-hun proudly told his mother while giving her pocket money during dinner, "This is money I earned through honest work."

The process of labor may seem unusual and pitiful, but if you think about it, as Gi-hun said, the 100,000 won is legitimate earned income. Earning money by playing ttakji might sound absurd, but that is reality. Our society has diversified, and the forms of earned income have become very varied. This also means there are many ways to make money. On the other hand, unearned income earned without working has also increased. It is no coincidence that unearned income cases have increased in the legal community. Most of these are fraud cases involving real estate, stocks, and funds.

In the past 2-3 years, "unearned income of the vested interests" has struck the legal community. All were led and involved by high-ranking public officials. They, being at the top tier of society, used their informational advantage to create conditions to make money through real estate, funds, stocks, etc., and took profits. The unfair reality caused great anger and frustration among the public. The admission fraud and private equity fund suspicions involving former Minister of Justice Cho Kuk’s family first ignited the fire. Cho’s family is on trial for allegations such as investing money in a specific private equity fund operated by a fifth cousin and making illegal profits. The core is to reveal the intentions and processes by which Cho and others generated unearned income.

Chief Prosecutor Kang Baek-shin, who investigated this case, strongly asserted during Professor Jung Kyung-shim’s trial in July, "They forged private documents to pursue unearned income without effort through admission fraud, pursued unearned income by criminal methods using funds, and violated personnel appointment rights by lying and concealing the truth at hearings to pursue unearned income in public office appointments," drawing attention.

Recently, the baton was passed to the Daejang-dong "development privilege and lobbying" suspicions. This case centers on unearned income of the privileged class who made money by developing real estate. Political and legal figures are voicing that the core should "not be forgotten." Former Deputy Prime Minister Kim Dong-yeon emphasized, "The core of the Daejang-dong case is the 'vested interest cartel' and 'real estate unearned income.' Without resolving real estate unearned income, we cannot solve the soaring real estate prices or the bubble in our economy."

It is positive that social discussions on unearned income have become active due to these two cases. Related government departments are struggling to find solutions. The legal community is closely monitoring the investigation and trial trends of related cases. Even among presidential candidates, there is competition over policies related to unearned income. Will a good solution be found? The public, frustrated by the unearned income of the powerful and weary from daily life, is earnestly waiting.