The prosecution, which reopened the investigation into Taekwang Group’s forced sales of kimchi and wine by its affiliates, has once again concluded that former Taekwang Group Chairman Lee Ho Jin is not guilty of any wrongdoing. This decision comes three years and eight months after he was previously cleared of charges.
According to legal sources on April 20, the Fair Trade Investigation Department of the Seoul Central District Prosecutors' Office (headed by Chief Prosecutor Kim Yong Sik) recently decided not to indict Lee on charges of violating the Fair Trade Act, citing insufficient evidence.
This case emerged after allegations surfaced that, between 2014 and 2016, Taekwang Group affiliates were forced to purchase kimchi produced by businesses owned by Lee Ho Jin’s family at inflated prices. Following a complaint from the Fair Trade Commission, prosecutors launched an investigation and, in August 2021, indicted Kim Ki Yoo, former chairman of the Taekwang Group Management Council, on charges of violating the Fair Trade Act. However, they declined to indict Lee, stating there was no evidence that he had ordered the wrongdoing.
What appeared to be a closed case was reignited in March 2023. The Supreme Court overturned lower court rulings and remanded the case, siding against Lee in a lawsuit he had filed to contest the corrective order issued by the Fair Trade Commission along with its criminal complaint. The Supreme Court stated at the time, "Lee Ho Jin, who played a dominant role in Taekwang’s decision-making process, could have been involved in various ways, indirectly using his influence," and deemed the Fair Trade Commission’s corrective order justified.
After the Supreme Court ruling, prosecutors began a fresh review to determine whether Lee could be held criminally responsible. It was reported that Kim Ki Yoo appeared before prosecutors several times and, unlike during the first investigation, testified that Lee had given instructions and was involved. However, prosecutors found these changed statements unreliable. They took into account the fact that the relationship between the two had deteriorated during Taekwang’s internal audit process, and that Kim failed to provide objective evidence to support his claims. Prosecutors also secured a recording in which Lee denied any knowledge of the matter. Ultimately, they again cleared Lee of the charges and closed the reinvestigation.
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