‘Yoon Defamation’ Kim Man-bae and Shin Hak-rim Head to Trial... Prosecution Says "Investigation Direction Changed Due to Backing Theory of Specific Person" (Comprehensive)

Four individuals, including Kim Man-bae, the major shareholder of Hwacheon Daeyu Asset Management, and Shin Hak-rim, former chairman of the Korean Federation of Journalists' Unions, were indicted on the 8th on charges of exchanging hundreds of millions of won in bribes in return for false reports defaming President Yoon Suk-yeol.

However, regarding the so-called 'behind-the-scenes' suspicion that figures from Lee Jae-myung's Democratic Party presidential campaign at the time were involved in the background of the false reports, the prosecution drew a clear line, stating that it was "different from the direction of the investigation."

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. / Photo by Jinhyung Kang aymsdream@

The Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jun-dong) on the same day indicted Kim Man-bae, chairman of Hwacheon Daeyu, and former chairman Shin (former NewsTapa senior researcher) on charges including violation of the Information and Communications Network Act (defamation), breach of trust, violation of the Anti-Graft Act, and violation of the Act on the Regulation of Concealment of Criminal Proceeds, and detained them. Kim Yong-jin, CEO of NewsTapa, and reporter Han were also indicted without detention on charges of violating the Information and Communications Network Act (defamation). Former chairman Shin is also charged with extortion. This is the first indictment about 10 months after the prosecution intensified the investigation by raiding Shin's residence in September last year.

According to the prosecution, around September 2021, when the controversy over preferential development in Daejang-dong arose, Kim met with former chairman Shin, who was then a senior researcher at NewsTapa, and spread false information that "President Yoon met Jo Woo-hyung, a Daejang-dong loan broker who appeared before the prosecution during the Busan Savings Bank investigation, and favored the case." Subsequently, some media outlets, including NewsTapa, reported on this content.

Between September 15 and 20 of that year, Kim allegedly gave Shin 165 million won along with a request to report on the matter, disguising it as 'book sales proceeds,' according to the prosecution. NewsTapa broadcast the false interview on March 6, 2022, three days before the presidential election. The prosecution believes Kim also spread false information to other media outlets such as NewsBus and Kyunghyang Shinmun, leading them to report on the matter, and the related investigation is ongoing.

The prosecution also investigated the possibility of Democratic Party officials being involved in the background of this case, but they were not included in this indictment. A Seoul Central District Prosecutors' Office official involved in the investigation said, "We confirmed that Kim fabricated a false frame to conceal the huge profits he gained from the Daejang-dong project, disseminated it to friendly media, and that people with aligned interests exploited this situation or phase to their advantage," but added, "If Kim committed this crime under instructions or conspiracy from a specific person, that would be the 'behind-the-scenes,' which differs from our investigation direction." When the false interview was broadcast three days before the presidential election, Lee Jae-myung's Democratic Party camp, competing against President Yoon, shared the article on social media, but this was merely to use it advantageously in the election, not direct involvement in the crime. However, the official added, "The investigation into the Democratic Party-related aspects is not yet complete."

Regarding former chairman Shin, the prosecution also applied extortion charges, alleging that between 2022 and 2023, he threatened Jeong, former director of the National Medical Center, saying, "I never authorized the transfer of the family relationship map book I gave you, but you gifted it to former President Moon Jae-in, so give me 150 million won. If you don't pay, I will sever our relationship," and extorted 47 million won.

Kim, CEO of NewsTapa, and reporter Han, who were indicted without detention, are charged with defaming President Yoon by reporting the false interview.

A prosecution official said, "We will do our utmost to maintain the prosecution so that the defendants receive punishment commensurate with their crimes."