'Choi Kyung-hwan Sillajen Investment Suspicion' First Trial Verdict Appeals by Former CEO Lee Cheol and Prosecution

Acquitted of Defamation, Sentenced to One Year in Prison for Embezzlement

Lee Cheol, former CEO of Value Invest Korea (VIK), who was prosecuted on charges of leaking suspicions about former Deputy Prime Minister Choi Kyung-hwan's investment in SillaJen to the media, has appealed the first trial verdict in which he was acquitted of defamation but found guilty of embezzlement.

According to the legal community on the 2nd, Lee's side, who has been on trial for defamation by publication and embezzlement, submitted an appeal to the Seoul Southern District Court, which handled the first trial, on the 24th of last month. The prosecution also filed an appeal with the same court a day later on the 25th. Both parties are known to have appealed on the grounds of unfair sentencing in the verdict.

Earlier, on the 19th of last month, Judge Noh Tae-heon of the Criminal Division 6 at the Seoul Southern District Court conducted the sentencing hearing for Lee and acquitted him of defamation for spreading false information, while sentencing him to one year in prison for embezzling company funds by registering his wife as an inside director of a subsidiary.

Regarding the defamation charge, Judge Noh explained, "The defendant was under psychological pressure due to being involved in the 'media collusion' case with former Channel A reporter Lee Dong-jae and after an interview with Munhwa Broadcasting Corporation (MBC), even suggested directions for additional investigation," adding, "If the additional investigation were to reveal falsehoods, the defendant's psychological burden would increase further, so there is no reason to give false answers while bearing such a burden."

However, on the embezzlement charge, he pointed out, "Embezzlement is constituted when company funds are withdrawn personally without a resolution of the board of directors," and noted, "The defendant is recognized to have the authority to decide on fund expenditures, but there is an abnormal fact that funds were transferred to the defendant's personal account."

In April 2020, MBC raised suspicions through a written interview with Lee that former Deputy Prime Minister Choi had invested 6.5 billion KRW in the bio company SillaJen. After directly investigating Lee and SillaJen officials, the prosecution judged that Lee had made false claims to the broadcaster and sought a one-year prison sentence for Lee in January.