Victim Falsely Accused as 'Drug Offender' in 'Myeongdong Loan Shark King' Case Loses State Compensation Lawsuit

[Asia Economy Reporter Kim Hyung-min] A victim who was falsely accused as a drug offender in the so-called 'Myeongdong Loan Shark' case over 20 years ago filed a lawsuit against the state seeking damages but lost in the first trial.

The Civil Division 24 of the Seoul Central District Court (Presiding Judge Lee Seok-jae) ruled on the 25th that the plaintiff, Shin Mo (63), lost the lawsuit against the state and police officers demanding "3 billion won in compensation."

In December 2001, Shin got into a physical altercation with Choi Mo (68) and his group, claiming he lost money due to a scam gambling incident. During this time, unbeknownst to him, someone placed a bag of drugs in his pocket and reported it to the police. He was falsely accused using the so-called 'throwing' method. Police officer A, who responded to the report, arrested Shin immediately. The following year, Shin was fined 7 million won for possession of methamphetamine (violation of the Narcotics Control Act, etc.), and the sentence was finalized. Later, an acquaintance of Choi confessed to the prosecution that "under Choi's orders, an item was placed in Shin's pants pocket," bringing a new turn to the case. Shin filed for a retrial in 2016 citing the new testimony and was acquitted in 2020. Subsequently, Shin filed a lawsuit against the state and police officers in March last year.

The court acknowledged that Shin was wrongfully accused but judged that there was no illegal act by the police during the investigation process, and thus the state is not liable to compensate Shin. It stated, "There is insufficient evidence to recognize that the police conspired with Choi and others to fabricate the plaintiff's (Shin's) drug possession crime."

Separately from the civil lawsuit, the Criminal Division 51 of the Seoul Central District Court (Chief Presiding Judge Ko Yeon-geum) decided in August last year that the state must pay Shin 11.76 million won in criminal compensation for detention and related expenses.