The trial of Bae Jae-hyun, Kakao's Chief Investment Officer, who was indicted on charges of market manipulation during the acquisition of management rights of SM Entertainment last year, has recently been reassigned to a newly established panel at the Seoul Southern District Court. The case is complex, with as many as 47 witnesses to be examined, resulting in an overwhelming workload for the previous panel.
According to the Seoul Southern District Court on the 23rd, the first trial panel for the case, in which Bae and the Kakao corporation are defendants, has been changed from the existing Criminal Division 13 to the newly established Criminal Division 15 this month. Previously, the Seoul Southern District Court had Criminal Divisions 1 through 14, but in line with this month's judicial personnel changes and new case assignments, Criminal Division 15 was newly added. This was due to an increase in financial and securities crime cases in recent years, which has led to a rise in related trial workloads. A court official stated, "The panel was expanded because the workload was excessive."
The newly established Criminal Division 15 will primarily handle corruption, election, and sexual violence cases. Presiding Judge Yang Hwan-seung, who transferred from the Seoul Central District Court to the Seoul Southern District Court this month, will lead the panel. However, one associate judge position is still vacant and is scheduled to be filled on the 26th. Due to the panel change, the trial originally scheduled for the previous day was postponed. The next trial date has not yet been set.
Since the Seoul Southern District Prosecutors' Office focuses on financial and securities crimes, related trials are mainly conducted at the Seoul Southern District Court. In recent years, not only has the number of financial and securities crimes such as violations of the Capital Markets Act increased, but the illicit gains from these crimes have also grown to astronomical levels. Sophisticated financial and securities crimes are inherently complex and require lengthy trial periods, placing a significant burden on court workloads. In the Kakao trial alone, 47 witnesses have been requested, indicating that the trial will take a considerable amount of time. On the 1st, the first witness, CFO Lee Kyung-jun, appeared in court, and his examination took the entire day from morning until afternoon. The prosecution and defense have been sharply disputing the charges, leading to frequent heated exchanges throughout the examination.
Meanwhile, the trial concerning the agent who embezzled advertising fees from baseball player Ryu Hyun-jin is also underway at the Southern District Court. Although a sentencing date was set earlier this year, it was postponed three times, during which the presiding judge was changed due to judicial personnel reshuffling. Consequently, a new trial session has been scheduled for the 21st of next month to conclude the arguments.
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