Appeals Court Orders 10 Million Won in Damages
Compensation Reduced by 20 Million Won Compared to First Trial
Namguk Kim, Digital Communication Secretary at the Presidential Office, has partially won the second trial in his civil lawsuit against Jang Yechang, former Supreme Council member for Youth of the People Power Party, who raised allegations of Kim's "illegal cryptocurrency trading."
According to Yonhap News on November 27, the Seoul Southern District Court Civil Appeals Division 2-1 (Presiding Judges Kim Jeongmin, Lee Minsu, and Park Yeonju) held a sentencing hearing for the damages claim lawsuit filed by Secretary Kim and ruled that Jang must pay Kim 10 million won. However, compared to the first trial, which ordered Jang to pay 30 million won out of the 50 million won in damages claimed by Kim, the amount of compensation has been significantly reduced.
Previously, in May 2023, Jang raised suspicions about Secretary Kim's alleged illegal cryptocurrency trading. At the time, Jang posted on social media and spoke in a radio interview, claiming that Kim had prior knowledge of listing information and engaged in illegal cryptocurrency transactions. In September of that year, Kim filed a civil lawsuit. Kim also filed criminal complaints against Jang and fellow party member Assemblyman Kim Sungwon for defamation by spreading false information, but both cases were closed with no charges filed.
In the first trial, the court partially ruled in favor of Kim in the damages lawsuit against Jang. The court stated, "According to broadcasting review regulations, one must not use expressions that presume someone is a criminal until a court's final judgment is reached." The court further pointed out, "Despite being given an opportunity by the host to correct his statement, the defendant instead more actively specified false information." The ruling continued, "Even if there is controversy regarding the plaintiff's virtual asset holdings, timing, or trading volume, or if the plaintiff's explanation is unconvincing, one cannot indiscriminately claim, without evidence, that the plaintiff committed a crime and thus defame him." The court added, "Even when raising issues of public interest, one must not maliciously slander without specific grounds," and noted, "Although a non-indictment was issued in the related criminal case, whether this constitutes a civil tort must be examined separately."
Secretary Kim was suspected of transferring part of his cryptocurrency account deposit to a bank account to match his total reported assets ahead of his 2021 and 2022 National Assembly asset disclosures, and then converting the remaining deposit into cryptocurrency. Prosecutors indicted Kim on charges of obstructing the asset change review work of the Public Officials Ethics Committee (obstruction of official duties by fraud), but he was acquitted in both the first and second trials, and the verdict was finalized.
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