The day after Kim Yong, former deputy director of the Democratic Research Institute and known as the 'closest aide' and 'left arm' of Lee Jae-myung, leader of the Democratic Party of Korea, was sentenced to prison for violating the Political Funds Act and other charges on the 1st, attention from the political and legal circles is focused on the subsequent actions of the courts and prosecutors. This is because the court has effectively acknowledged the illegality of the money Kim received, which is suspected to have been used for Lee's presidential primary election expenses, inevitably impacting the trials and investigations related to the 'Daejang-dong development corruption.'
Kim was sentenced to five years in prison in the first trial held at the Seoul Central District Court the previous day. This is the first court ruling among the ongoing trials related to the Daejang-dong allegations. Kim's case was the only link to Lee, who is suspected to be the biggest beneficiary, concerning the motives and purposes behind the Daejang-dong development project. In this regard, the legal community anticipates that the repercussions of this ruling will be significant.
Former Deputy Director Kim Yong of the Democratic Research Institute, who was indicted on charges of receiving illegal election funds and bribes from a private developer involved in the Daejang-dong project, is attending the first trial sentencing hearing held on the 30th of last month at the Seoul Central District Court in Seocho-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
6 Billion Won Recognized as Illegal... Investigation into Lee Jae-myung Inevitable
The legal community is focusing on the fact that among the two charges for which the court found Kim guilty the previous day, the court effectively recognized the 'illegality' of the political funds Kim received rather than the bribes.
Kim was indicted for conspiring with former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu and lawyer Jeong Min-yong from April to August 2021 to receive 847 million won in four installments from private businessman Nam Wook under the pretext of presidential election funds. The court recognized guilt only for the 600 million won actually delivered to Kim and acquitted him of the 247 million won that was not delivered due to a so-called 'delivery accident.' The court held that even if the funds were raised for illegal purposes, if the money was not actually delivered and the crime was not consummated ('gisoo'), responsibility cannot be imposed.
Regarding this, the court stated that the testimonies given by Yoo Dong-gyu, Jeong Min-yong, and Nam Wook in court were detailed and specific, thus "credible." They testified that Kim received money at places such as Yuwon Holdings, Gwanggyo Prona, and near the Gyeonggi Provincial Government Office, and presented related evidence. This included records showing that Kim initially requested Yoo for money under the pretext of presidential election funds, and the indictment by the prosecution specified the purpose of the funds as 'presidential primary election.' The court, by judging Kim guilty, effectively acknowledged these facts.
Accordingly, the prosecution's related investigation is expected to accelerate. Prosecutors currently tracking the use of the funds Kim received are investigating the possibility that this money was used by Lee as a preliminary deposit for the Democratic Party's presidential primary election. Suspicious circumstances exist: Kim received the money between April and August 2021, and Lee deposited 325 million won into a NongHyup bank account on June 28-29, 2021. Later, Lee declared holding 325 million won in cash during the 2021 public official asset disclosure and paid 100 million won of that as a preliminary deposit for the presidential primary election. At that time, Kim served as the deputy general manager of Lee's presidential campaign. Since the court recognized Kim's violation of the Political Funds Act, the prosecution is likely to investigate Lee for possible violations of the Political Funds Act as the ultimate recipient of the funds. If the investigation intensifies, Lee's judicial risks are expected to deepen.
However, a prosecution official said, "To indict Lee, it is necessary to prove intent to violate the Political Funds Act even if the money flowed." This means it must be proven that Lee was aware of the source of the funds and that using the money would violate the Political Funds Act but still used it as a primary election deposit. Lee's side has explained that the deposit was made using personal cash and condolence money for his mother's funeral.
Former Seongnam Urban Development Headquarters Director Yoo Dong-gyu is attending the first trial sentencing hearing for charges of violating the Political Funds Act and bribery under the Act on the Aggravated Punishment of Specific Crimes, held on the 30th of last month at the Seoul Central District Court in Seocho-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
"No Reason to Reject"... Yoo Dong-gyu's Testimony Recognition is a Direct Blow
The most notable aspect of this ruling is that the court recognized the credibility of Yoo Dong-gyu's testimony, which underpins the prosecution's charges in the Daejang-dong related cases. Yoo's testimony played a decisive role in judging Kim's main charges as guilty, and it is expected to have the same influence in the trials of other related figures, including Lee.
Initially, Yoo completely denied the charges related to himself but changed his stance for the first time on September 26 last year. Around October 5, 2022, he reported Kim's violation of the Political Funds Act. In response, Kim and the Democratic Party claimed that Yoo testified falsely due to coercion and threats from the prosecution.
The court stated that even if there are suspicious parts as claimed by Kim and the Democratic Party, those reasons alone cannot be grounds to reject Yoo's testimony. The court judged, "The credibility of Yoo's testimony should not be uniformly rejected based on his desperate situation or personal characteristics pointed out by the defendant (Kim Yong). It is appropriate to evaluate the rationality, objective reasonableness, consistency, and major points matching with other evidence of each individual testimony specifically and individually." The court also added, "(Yoo's) testimony on political fund violations was given after more than a year, and on bribery after nearly ten years, so it is unreasonable to expect him to recall every detail accurately and meticulously."
After the sentencing, Yoo emphasized, "People around me were tools for Lee Jae-myung," and "The beneficiary is Lee Jae-myung." Meanwhile, Kim's lawyer Kim Ki-pyo called the ruling "an incomprehensible judgment" and said, "The truth will be revealed in the appeal trial." Lee said, "The trial is not over yet, so I will wait and see," withholding further comment.
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