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"Upstanding Businessman in His 40s Branded a Tax Evader by Baseless Fake News"

False Tax Evasion Allegations Based on Anonymous Tip-off
Article Published Without Fact-Checking
Victim Files Complaint with Press Arbitration Commission and Police
Investigation Reveals Acquaintance Instigated the Incident
Reporter: "Received Instructions for Drafting and Investigating the Article"
Press Arbitration Commission: "Article Content Is Not True"
Police Refer Reporter and Instigator to Prosecution
Defamation Reports Rise Annually in Gwangju and Jeonnam

"Overnight, I became a tax evader."


A, a businessman in his 40s who has been running a steel business in Gwangju for over 20 years, lost his entire daily life in early May after receiving a strange phone call. The phone rang as usual. Although it was an unknown number, he answered, thinking it might be a business contact.


"Are you President 000? Why did you evade taxes?" The first words from the other end were a harsh question from an unfamiliar man. He introduced himself as a reporter from an online newspaper. He then began to make a series of one-sided allegations against A, such as, "I heard you drive a Bentley," and "I heard you hold positions at various organizations."


A was bewildered. He responded, "What are you talking about? Do you have any evidence?" but the reporter simply said, "I will contact you again later," and hung up.


A had never been investigated by the tax authorities for any illegal activity, so he felt uneasy but did not think much of it. However, a few days later, the situation took an irreversible turn.

"Upstanding Businessman in His 40s Branded a Tax Evader by Baseless Fake News" A, the victim, submitted part of an online article containing false and fabricated tax evasion allegations as evidence to the police. Provided by the victim's side

◇ 'Tax Evasion Allegation Article' Appears on Portal

On May 22, an article alleging tax evasion by A was published on a major portal site. Although the article did not mention his name, anyone familiar with A could easily tell that he was the subject, as the details were very specific.


The article even included the executive position A held at a Ministry of Justice-affiliated organization as part of his community activities.


The aftermath of the article was significant. Messages from acquaintances poured in. Even when A explained, "It is not true," the responses remained cold. Suspicion had already spread.


Calls from government agencies were even more direct. Gwangju Metropolitan City Hall and Buk-gu District Office, among others, contacted him one after another to verify the facts. Since A had previously received various awards such as the "Businessperson of the Year" from these agencies, the article even affected the verification of his eligibility for such honors.


"It felt like the honor I had built up over the years was collapsing." This was A's lament.


◇ The Truth Revealed After Filing a Complaint

Deciding he could no longer endure it, A filed a police complaint against reporter B, who wrote the article, on charges including defamation. He also filed a case with the Press Arbitration Commission.


As the police investigation began, hidden facts gradually came to light. B confessed to the police, saying, "I only wrote the article at the instigation of C."


In the statement of facts written by B, it was noted, "Based on the 'tax evasion allegation questionnaire' directly written by C, I conducted a phone interview with victim A. Following C's instructions, I investigated the allegations related to A with relevant agencies such as Buk-gu District Office. I finalized the article for online publication based on the draft provided by C."


What was even more shocking was C's identity. C was a close acquaintance whom A called "older brother" and respected. C held several influential positions in the region and had previously run for local council and held party positions. Notably, he had worked with A at the same Ministry of Justice-affiliated organization.

"Upstanding Businessman in His 40s Branded a Tax Evader by Baseless Fake News" An article alleging false tax evasion related to the victims has been posted in a group chat where acquaintances of the victims gather. Provided by the victims' side

◇ "It Was for the Public Good" ... But No Evidence Provided

Due to reporter B's confession, C was also summoned by the police for questioning. When asked, "Why did you do this?" C reportedly insisted, "It was for the public good." However, it is said that he failed to provide any concrete evidence for the tax evasion allegations.


Furthermore, it was confirmed that C posted the article in a group chat where many of A's acquaintances were present. The so-called "public shaming" structure was thus completed: false tip-off → fabrication of a false article → spreading it externally.


◇ Both Press Arbitration Commission and Police Recognize 'False Article'

On July 2, the Press Arbitration Commission ruled that the entire content of the "tax evasion allegation article" related to A was false and ordered reporter B and the media outlet to issue a correction. The decision was in favor of A.


The police, continuing their investigation, also referred reporter B and instigator C to the prosecution on July 17 on charges of violating the Information and Communications Network Act and defamation by publication. As of now, both are still under investigation by the prosecution.


Victim A said, "I do not know why this happened to me. There was an unresolved misunderstanding with my acquaintance. Even so, I am extremely angry that he went so far as to involve a reporter and have false and fabricated news published. I hope there will be no more victims who suffer unjustly like me."


Meanwhile, cases reported to the police for defamation due to false information or fake news have been increasing every year.


According to the Gwangju and Jeonnam Police Agencies, over the past three years (from 2022 to 2024), there have been 735 reports in Gwangju and 696 in Jeonnam for violations of the Information and Communications Network Act and defamation by publication. By year, Gwangju recorded 212 cases in 2022, 262 in 2023, and 261 in 2024; Jeonnam recorded 197 cases in 2022, 232 in 2023, and 267 in 2024, showing a significant annual increase in related reports.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


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