[Exclusive]Shock over brother's "financial management for you": Park Soo-hong's 9.8 billion won lawsuit finally reaches conclusion [Comprehensive]

*This content was translated by AI.

• Brother sentenced to three years and six months in prison for embezzlement, Supreme Court ruling final; sister-in-law also apologizes after 'KakaoTalk defamation'

Broadcaster Park Soo-hong is set to receive a first-instance verdict in his civil lawsuit against his brother and sister-in-law, seeking 9.8 billion won in damages, this September. It has been five years and two months since the lawsuit was filed in June 2021.

The Seoul Western District Court's Civil Division No. 12 (B) is scheduled to hold a judgment announcement session on September 11 for the damage compensation lawsuit filed by Park Soo-hong against his brother, Mr. Park, and sister-in-law, Ms. Lee.

In June 2021, Park Soo-hong filed a lawsuit seeking 11.6 billion won in damages against them. The trial proceeded over five years and concluded with the 13th session of arguments on the 10th. Alongside this, Park Soo-hong also pursued criminal charges for embezzlement against the two individuals in 2022, engaging in a prolonged legal battle.

Subsequently, through court arguments, Park Soo-hong submitted an application to amend the claims and grounds of his lawsuit, raising the claimed amount to 19.8 billion won by aggregating all settlement losses incurred over 20 years. The current value of the lawsuit has since been revised to approximately 9.8 billion won.

At that time, Park Soo-hong's side explained: "Park Soo-hong's brother managed assets within Park Soo-hong's corporation, and there was an implicit agreement that the legal relationship was not an entertainment contract but a special entrustment for asset management." They added, "The claim seeks to reflect settlement results corresponding to 20 years after the conclusion of asset management at the time of asset management settlement."

They further argued: "In damage compensation lawsuits, the statute of limitations is 10 years. However, under judicial precedents, if it is discovered that partners engaged in a joint venture but failed to settle accounts, a claim filed within five years from the termination of the partnership or collaboration allows for settlement of asset management results spanning 20 years, and the 10th-year statute of limitations does not apply." They maintained: "Periods exceeding 10 years were included within the scope of judgment in settlement lawsuits, thereby expanding the compensation amount for uncollected funds."

Prior to this verdict announcement, the trial regarding embezzlement charges against the two individuals concluded with a final guilty ruling by the Supreme Court in February. The First Division (B) of the Supreme Court stated in the appeal review for those accused of violating the Act on Aggravated Punishment of Specific Economic Crimes (embezzlement): "The defendants' appeals are rejected." Consequently, the second-instance rulings—three years and six months in prison for Mr. Park and one year in prison with a two-year probation for Ms. Lee—were finalized.

The embezzlement lawsuit surrounding Park Soo-hong's brother and sister-in-law began on March 29, 2021, with a revealing comment that brought the issue to light after Park Soo-hong publicly stated his position. The controversy intensified amid shocking allegations of "embezzlement of 10 billion won in appearance fees," controversies over his father's abusive language, Ms. Lee's defamation on KakaoTalk, and accusations of "media manipulation" by the brother's defense attorney.

At that time, Park Soo-hong claimed that his brother and sister-in-law embezzled corporate funds and misused appearance fees for personal living expenses, stating: "The amount they embezzled reached 11.6 billion won." The Seoul Western District Prosecutors' Office also requested arrest warrants against them, determining that between 2011 and last year, while operating an entertainment company, they misappropriated a total of 6.17 billion won through: △falsely recording labor costs at 1.9 billion won; △using corporate funds for real estate purchases totaling 1.17 billion won; △unauthorized use of other corporate funds amounting to 90 million won; △use of the company credit card beyond its designated purpose totaling 90 million won; and △unauthorized withdrawals from Park Soo-hong's account totaling 2.9 billion won. Initially, the Prosecutors' Office estimated the embezzlement amount at around 2.1 billion won when requesting arrest warrants but later determined an additional 4.1 billion won through further investigations.

In the first instance, the Prosecutors' Office sought seven years and three years in prison for them respectively. The court ruled guilty of embezzling 2 billion won of company funds from Mr. Park but found him not guilty of misappropriating 1.6 billion won belonging to Park Soo-hong, sentencing him to two years in prison. Ms. Lee was acquitted due to insufficient evidence of complicity. However, in the second instance, Mr. Park was sentenced to three years and six months in prison, with the court citing "concerns over flight risk" and ordering his detention in court. Additionally, Ms. Lee was partially convicted, receiving a one-year prison sentence with a two-year probation and 120 hours of social service.

During that trial, it was confirmed that the embezzlement amount admitted by them exceeded 2 billion won concerning Rael and Media Boom. The two acknowledged wrongdoing in the first instance regarding: Mr. Park's use of his management company's corporate card for personal purposes, registering fake employees on the company roster, and misappropriating funds under the guise of salaries; and the use of company funds to pay for private legal counsel and other personal purchases.

Park Soo-hong attended the appeal trial as a witness following the first instance, stating: "I apologized for the first-instance verdict but felt it was too unfair, so I insisted on testifying." He added: "Seeing them freely use my assets under the guise of a family company made me feel deeply aggrieved." He further argued: "Even if we calculate that they saved all salaries and dividends received over four years from real estate valued at 4.3 billion won acquired between 2014 and 2017 without spending a single won, there is still a shortfall of 2 billion won."

Park Soo-hong emphasized: "I heard my brother say 'financial management for you.' Until the partnership was dissolved, I had no real estate registered under my name. All assets were supposedly shared equally between them." He stressed: "Sacrificing one person to benefit others is absolutely unacceptable, even among family members. Such incidents must not happen again."

Additionally, Ms. Lee, who was brought to trial for defamation by spreading false information about Park Soo-hong and his wife, later expressed her intention to apologize. During the closing arguments of a trial held on the 6th at the Seoul Western District Court's Criminal Appeal Division No. 1 regarding violation of the Act on Promotion of Information and Communications Network Utilization and Information Protection (defamation), she stated despite arguing for acquittal after the Prosecutors' Office sought a 10-month prison sentence: "Although this was an extremely personal conversation with acquaintances, I apologize for hurting Park Soo-hong and Kim Da-ye through this dialogue. I regret my unwise and rash words and actions." She continued: "I realized how foolish and shameful my behavior was. I deeply reflect on it and vow that such incidents will never happen again. I will strive to be a mother who does not bring shame to her children." The appeal verdict is scheduled for announcement on the 23rd.

Meanwhile, shortly after the Supreme Court's ruling, Park Soo-hong told StarNews over the phone: "Regardless of the lawsuit outcome, thank you for following this closely and speaking out over several years." He added cautiously: "I am also inadequate, so it is truly heartbreaking to comment on this. I apologize for not being able to speak at length regarding family matters."

Attention now turns to what verdict the two individuals will receive in the five-year civil lawsuit.

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*This content was translated by AI.