PCA, Tae Young-ho Not Prosecuted on Suspicion of 'Split Donations'

The High-ranking Officials' Crime Investigation Unit (HCOCIU) has decided not to prosecute former People Power Party lawmaker Tae Young-ho, who was accused of violating the Political Funds Act and the Public Official Election Act in connection with allegations of 'split donations.'

On the 30th, the HCOCIU announced that the Investigation Division 3 (Chief Prosecutor Park Seok-il) had decided not to prosecute the case involving former lawmaker Tae's alleged violations of the Political Funds Act. The HCOCIU referred the case of local councilor A, suspected of exceeding the annual donation limit, to the prosecution, which has investigative authority.

Former Tae Young-ho, People Power Party Member of the National Assembly. Photo by Hyunmin Kim kimhyun81@

Former Director Tae was suspected of receiving 'split donations' from five local council candidates in his former constituency, Gangnam-gu Gap, Seoul, from January to December 2022, the year when local elections were held, allegedly as payment for candidate recommendations.

First, regarding the allegations of violating the Political Funds Act and the Public Official Election Act related to candidate recommendation payments, the HCOCIU stated, "Even the whistleblower only reported the donation details and did not report that the donations were in exchange for nominations. The whistleblower testified that they did not consider the donations as payment for nominations. All five local council candidates involved testified that their donations were made to support the defendant's legislative activities and to participate as politicians from the same constituency, unrelated to nominations. The defendant's family and acquaintances also testified that they voluntarily donated with the same intention."

Furthermore, the HCOCIU explained, "There is no evidence that the defendant exerted influence over nominations. The donation dates are spread out with a significant gap from the June 1, 2022, simultaneous local elections, and donations continued even after the nomination date. The total amounts of each donation ranged from 2 million to 6 million KRW, which are relatively small sums. Considering these factors, it is difficult to recognize these donations as payments for nominations. When combining the testimonies of the whistleblower, aides, and witnesses, it is hard to view the donations from the local council candidates as illegal funds given in exchange for nominations. There is no other evidence to acknowledge the charges," explaining the reason for the non-prosecution decision.

Regarding the alleged violation of the Political Funds Act related to exceeding the donation limit, the HCOCIU stated, "Among the five local council candidates involved, three did not exceed the annual donation limit even when combining donations made under their own names and those of their family and acquaintances, so there is no need for further investigation as no crime is recognized."

The HCOCIU added, "For the remaining two candidates, the total annual donations under their own names and those of their family and acquaintances slightly exceeded the individual donation limit. However, the secretary who managed the donations testified that during the year-end process of issuing donation receipts, they learned the personal details and amounts donated by family and acquaintances. Since donations were not managed individually by person, the defendant likely did not know whether the total amount per person exceeded the donation limit."

The local council candidates who supported former lawmaker Tae also reportedly testified that their family and acquaintances voluntarily donated individually and did not engage in so-called 'split donations.'

For a violation of the Political Funds Act to be established, it must be recognized that former lawmaker Tae conspired with donors or was aware or approved in advance that the donations exceeded the donation limit and were split under the names of family and acquaintances. The HCOCIU concluded that there is no evidence to support such facts.

The HCOCIU stated, "Based on the investigation results, the two local council candidates involved exceeded the annual donation limit by only 1 million KRW and 800,000 KRW, respectively, even when combining donations under their own names and those of family and acquaintances. Without other objective evidence, it is difficult to recognize that the defendant conspired with the local council candidates. Moreover, considering the testimonies of the local council candidates and other witnesses, it is hard to conclude that the defendant conspired with them or was aware or approved in advance of donations exceeding the limit and received such excess donations. There is no other evidence to acknowledge the charges."

However, the HCOCIU judged that local councilor A is suspected of exceeding the donation limit by using the names of family and acquaintances, and additional investigation, including questioning the family and acquaintances of A, is necessary.

Since local councilors are not subject to investigation by the HCOCIU under the HCOCIU Act, the HCOCIU referred the investigation of A to the Supreme Prosecutors' Office according to relevant guidelines.

The allegations of 'split donations' involving former lawmaker Tae surfaced through media reports in May last year. Subsequently, a civic group filed a complaint against former lawmaker Tae for violating the Political Funds Act, and the HCOCIU launched an investigation.

Immediately after the media reports, former lawmaker Tae held a press conference, denying the allegations, stating, "I am proud that there is not a single blemish in the fundraising process," and "The allegations of backdoor nomination deals are so absurd that I am speechless."

Earlier, on the 3rd, the HCOCIU summoned former lawmaker Tae as a suspect on charges of violating the Political Funds Act and the Public Official Election Act for questioning.