[Invest&Law] Min Yuseong's Appeals Trial for "Illegal Advisory Services to Shin Dongju" to Begin Next Month

Three-Year Prison Sentence and 19.8 Billion Won Forfeiture in First Trial
for Involvement in Lotte Group Management Rights Dispute

The appeals trial for Min Yuseong, former president of Korea Development Bank (age 71), who was sentenced to prison in the first trial for violating the Attorney-at-Law Act during the Lotte Group management rights dispute, will begin in earnest next month.

October 22, 2015, Min Yuseong, former president of the Korea Development Bank (left), and Shin Dongju, chairman of SDJ Corporation (former vice chairman of Lotte Holdings Japan). Asia Economy DB

According to the legal community on May 7, the Seoul Central District Court Criminal Appeals Division 8-2 has scheduled the first appellate hearing for Min, who was indicted for violating the Attorney-at-Law Act, for June 11. Due to the defendant's obligation to appear, Min must attend the hearing in person.

Previously, Min was accused of providing legal services without a lawyer's license to Shin Dongju, chairman of SDJ Corporation (former vice chairman of Lotte Holdings Japan), during the Lotte Group management rights dispute from 2015 to 2017, known as the "War of Brothers." He allegedly received 19.8 billion won in advisory and success fees.

Min served as president of Korea Development Bank from 2008 to 2011. In 2013, he became chairman of the management consulting firm Namucorp. In 2015, he reportedly offered to help Shin Dongju regain management rights by leveraging his experience as president of Korea Development Bank and other credentials. At that time, Shin Dongju had been dismissed as vice chairman of Lotte Holdings Japan and was in a management dispute with his younger brother, Shin Dongbin, chairman of Lotte Group.

According to prosecutors, Min was responsible for planning criminal and administrative cases related to Lotte Group, selecting lawyers, overseeing various lawsuits, collecting evidence, submitting opinions, organizing statements from representatives and witnesses, and shaping public opinion. To this end, Min and Shin Dongju signed an advisory contract with the goals of securing a court detention or guilty verdict for Shin Dongbin, failing to reacquire the Lotte Shopping duty-free shop license, and raising nationality controversies. The two reportedly referred to this project as "Project L."

These details became public when Min filed a civil lawsuit against Shin Dongju, seeking more than 10 billion won, claiming he was "unilaterally terminated" from the advisory contract. In 2020, the Supreme Court ruled against Min, finalizing his loss in the civil suit. The court declared the advisory contract "an act against public policy" and ruled it invalid.

Min's legal team has completely denied the Attorney-at-Law Act violation charges. During the first trial, they argued, "In projects such as corporate spin-offs or mergers and acquisitions (M&A), teams are formed not only with lawyers but also with tax and financial experts. If the prosecution's argument is accepted, everyone involved in the project who is not a lawyer would be violating the Attorney-at-Law Act."

Earlier this year, the first trial court sentenced Min to three years in prison. The court also ordered the full confiscation of the advisory and success fees Min received through company accounts. The court stated, "There is a need for severe punishment as this act runs counter to the intent of the attorney system," and noted as aggravating factors that the offense lasted more than two years and involved 19.8 billion won in illicit gains. However, considering Min's health, the court did not order immediate detention. Both the prosecution and Min appealed the first trial verdict.