Suspected Activities of Unregistered Lawyer
'Trial Manipulation' Allegations Under Ongoing Investigation
Hong's 9.9 Billion Won Transaction with Kim Man-bae
Only 14.54 Million Won Interest Recognized as Criminal Charge
Two Journalists Also Indicted for 'Money Transactions with Kim Man-bae'
Former Supreme Court Justice Kwon Soon-il and Money Today Chairman Hong Seon-geun, identified as key figures in the 'Daejang-dong 5 Billion Won Club,' have been indicted without detention. This comes about three years after allegations surfaced that lawyers, politicians, and journalists received or were promised large sums of money as bribes from the Daejang-dong group. However, the core allegation of 'trial manipulation' involving former Justice Kwon was excluded from this indictment. Chairman Hong was also revealed to have borrowed 9.9 billion won twice from private developer Kim Man-bae related to Daejang-dong, but was only indicted on charges of receiving an interest exemption worth approximately 15 million won.
The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Seung-hak) indicted former Justice Kwon on the charge of violating the Attorney-at-Law Act without detention on the 7th.
After retiring, from January to August 2021, former Justice Kwon is accused of working as an advisor for Hwacheon Daeyu Asset Management, where developer Kim Man-bae is the major shareholder, without registering as a lawyer with the Korean Bar Association. During this time, he allegedly engaged in lawyer activities such as analyzing trial situations for a civil lawsuit concerning the right of passage of surrounding land filed by a construction company against Seongnam Utddeul, the Daejang-dong development project operator, and preparing legal documents and providing legal arguments for the first trial of an administrative lawsuit filed by Seongnam Utddeul against Seongnam City regarding underground power transmission towers.
Former Justice Kwon claimed he only served as an advisor, but the prosecution's assessment differed. A prosecution official stated, "Former Justice Kwon performed various lawyer duties beyond mere legal consultation in a separate office," adding, "It was confirmed that he effectively drafted legal complaints, preparatory documents, and responses, advised on legal strategies, and made revisions." Former Justice Kwon received 150 million won in advisory fees during his tenure at Hwacheon Daeyu.
The prosecution announced, "Investigation into the trial manipulation allegations related to the 5 Billion Won Club involving former Justice Kwon will continue." They explained that due to the prolonged investigation, only charges with sufficient evidence were filed first.
The trial manipulation allegation involves claims that in July 2020, when the Supreme Court overturned former Democratic Party leader Lee Jae-myung's violation of the Public Official Election Act with a not guilty verdict, Kim promised a large sum of money in exchange for former Justice Kwon playing a casting vote role. The suspicion arose after it was revealed that Kim visited former Justice Kwon's Supreme Court office multiple times around the time of the Supreme Court ruling. A prosecution official said, "We will do our utmost until public suspicions are resolved."
Hong, chairman of the media company Kim belonged to, is accused of borrowing 5 billion won from Kim in October 2019 under the names of his spouse and son and repaying only the principal in January 2020. The prosecution applied the Improper Solicitation and Graft Act charges, viewing the approximately 14.54 million won of waived agreed interest as money received from Kim.
In 2021, Hong also borrowed 4.9 billion won through Cheonhwa Dongin No.1, controlled by Hwacheon Daeyu, but repaid both the principal and 4.6% interest, which the prosecution judged as not problematic. Although the total money exchanged between Hong and Kim amounted to 9.9 billion won, the amount involved in criminal charges was limited to 14.54 million won.
The prosecution also concluded with a 'no charges' decision on allegations that Hong promoted Kim to deputy director in return for money, citing lack of evidence of improper solicitation. A prosecution official explained, "The promotion timing was significantly different from the period when money was exchanged, and it was difficult to recognize job-relatedness," adding, "For breach of trust to be established, there must be awareness of a quid pro quo relationship involving a specific request and exchange of money, which was entirely absent." The prosecution did not disclose under what pretext Hong borrowed the 5 billion won.
The prosecution plans to continue investigating the trial manipulation allegations involving former Justice Kwon and other individuals named in the 5 Billion Won Club, including former Prosecutor General Kim Soo-nam and former Blue House Senior Secretary for Civil Affairs Choi Jae-kyung.
Meanwhile, the Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jun-dong) indicted two former journalists without detention on charges of breach of trust and violation of the Improper Solicitation and Graft Act for receiving money from Kim in exchange for blocking critical articles about the Daejang-dong project and ensuring favorable coverage.
A, a former executive of The Hankyoreh, is accused of receiving a total of 890 million won in apartment pre-sale payments along with solicitations from May 2019 to August 2020. A claimed the money was a loan and repaid 600 million won, but the prosecution judged it as money received rather than lent.
B, a former executive of JoongAng Ilbo, is accused of receiving a total of 204 million won from Kim between April 2019 and August 2021 in exchange for solicitations (including breach of trust). Among this, 103 million won was also charged under the Improper Solicitation and Graft Act. B reportedly repaid 140 million won of this amount.
The prosecution closed the case without indictment regarding C, a former executive of The Korea Times who was under investigation for money transactions with Kim and died by suicide. Kim was indicted without detention on charges of providing 14.54 million won to Chairman Hong and giving 1.24 billion won to journalists along with improper solicitations.
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