Prosecutors Completely Defeated by Lee Jae-myung... Inevitable Impact on Remaining Investigations and Trials

"Lack of Direct Evidence in Baekhyun-dong" · "Room for Dispute over North Korea Remittance"
Low Possibility of Re-requesting Warrants... Non-Detention Prosecution Expected
Investigation Likely to Be Delayed Due to 42.8 Billion Won Contract Allegation and Split Donations

The court's dismissal of the arrest warrant for Lee Jae-myung, leader of the Democratic Party of Korea, on the 27th due to "insufficient evidence of charges" is expected to put a sudden brake on the prosecution's investigation. The result of this warrant review is likely to have a significant impact not only on the remaining investigations against Lee by the prosecution but also on the ongoing Daejang-dong trial.

Judge Yoo Chang-hoon, head of the warrant division at the Seoul Central District Court, who presided over Lee's warrant hearing, assessed the degree of evidence for each of the three charges against Lee in nearly 900 characters, concluding that there was insufficient evidence for the Baekhyeon-dong and North Korea remittance-related charges, except for the perjury coaching charge.

Lee Jae-myung, leader of the Democratic Party of Korea, is speaking as he leaves Seoul Detention Center in Uiwang, Gyeonggi Province on the 27th. [Joint Coverage] [Image Source=Yonhap News]

Regarding the charge of breach of trust under the Specific Economic Crimes Act, alleging that Lee caused at least 20 billion won in damages to Seongnam Urban Development Corporation by excluding participation in the Baekhyeon-dong development project, the judge pointed out, "There is suspicion that Lee was involved, but direct evidence itself is lacking." As for the bribery and Foreign Exchange Transactions Act violations related to North Korea remittances under the Act on Aggravated Punishment of Specific Crimes, the judge stated, "There is room for dispute regarding Lee's awareness, conspiracy, and degree of involvement." Concerning the Baekhyeon-dong allegations, the judge cited lack of evidence, and regarding the North Korea remittance, he expressed doubts even about the essential elements of the crime such as intent, concluding that the evidence was insufficient. Furthermore, Judge Yoo judged that although there is suspicion of 'inappropriate intervention by surrounding figures' related to former Gyeonggi Province Peace Deputy Governor Lee Hwa-young's inconsistent testimony about Lee's involvement in the North Korea remittance case, there is insufficient material to consider that Lee was directly involved.

Unlike cases where the court dismisses an arrest warrant citing 'protection of the suspect's defense rights' or 'sufficient evidence already secured,' the court's pointing out of insufficient evidence of criminal charges is a painful blow to the prosecution. The prosecution is now in a situation where it must endure criticism that it is investigating the opposition party leader for political purposes without concrete evidence.

In ordinary cases, even if a warrant is dismissed once, the prosecution would consider supplementing the investigation and reapplying for the warrant, but given that the investigation is against the leader of the main opposition party, the likelihood of this is low. Ultimately, there is growing speculation that Lee will be indicted without detention.

Following the result of the warrant hearing on this day, disruptions are inevitable in the remaining prosecution investigations related to Lee, including the Daejang-dong 42.8 billion won contract allegation, the Baekhyeon-dong lobbying payment share allegation, and the Ssangbangwool split donation suspicion. Since the prosecution must focus its investigative resources on supplementing the investigation to indict Lee based on the charges listed in this warrant, other investigations are expected to be delayed.

There are also views that the investigation into the 'presidential election interference public opinion manipulation case,' which began recently amid allegations of a false interview involving Kim Man-bae and Shin Hak-rim, may lose momentum, as the final target of the investigation is whether there was a group behind the NewsTapa report aimed at Lee's presidential election victory. Furthermore, it is expected to affect the previously indicted trials related to Daejang-dong and Seongnam FC donations.

It is somewhat fortunate for the prosecution that the court found the perjury coaching charge against Lee to be substantiated. The prosecution believes that Lee, who was indicted for false statements during a 2018 TV debate, was able to maintain his gubernatorial position and run for president because he coached perjury, leading to an acquittal. Immediately after the warrant dismissal, the prosecution responded, "The fact that the perjury coaching charge was substantiated means that evidence was realistically destroyed, so judging that there is no concern for evidence destruction is contradictory."

Prosecutor General Lee Won-seok, speaking to reporters on his way to work that day, said, "A warrant hearing is not a main trial to determine guilt or innocence but a preliminary procedure to decide whether detention is necessary," adding, "We will carefully review the reasons for the warrant dismissal and find parts of the investigation that need to be supplemented to ensure appropriate punishment commensurate with the crime."

When asked about the opposition's criticism of the investigation as 'political and targeted,' he said, "The ongoing investigation against Lee all began under the previous administration," and added, "The judiciary should not be politicized, cannot be politicized, and will not be politicized."