[Exclusive]Shocked by older 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.

• Older 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's civil lawsuit seeking 9.8 billion won in damages against his older brother and sister-in-law will reach a first-instance conclusion this September. This comes five years and two months after 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 damages claim lawsuit filed by Park Soo-hong against his older 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 argument session on the 10th of this month. 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 arguments, Park Soo-hong submitted an application to modify the claim and grounds for the lawsuit, raising the claimed amount to 19.8 billion won by aggregating all settlement losses incurred over 20 years. The current litigation value has been revised again and set at approximately 9.8 billion won.

At that time, Park Soo-hong's side explained: "Park Soo-hong's older 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 asset management entrustment." 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 cases of damages claims, the statute of limitations is 10 years. However, if it is discovered that partners engaged in a business relationship but failed to settle accounts, a claim filed within five years from the termination of the partnership or collaboration allows for settlement of 20-year asset management results, and the 10th-year statute of limitations does not apply." They maintained, "Periods exceeding 10 years were included within the scope of judgment for settlement lawsuits, thereby expanding compensation amounts for uncollected funds."

Prior to this judgment announcement, the trial regarding embezzlement charges against the two individuals concluded with a final guilty verdict by the Supreme Court in February. The Supreme Court's First Division (B) stated in the appeal review of those accused under 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 two years probation for Ms. Lee—were finalized.

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

At that time, Park Soo-hong claimed that his older 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 accounting 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; △using company credit cards for purposes beyond their designated use, totaling 90 million won; and △unauthorized withdrawals from Park Soo-hong's accounts totaling 2.9 billion won. Initially, the Prosecutors' Office estimated embezzlement at around 2.1 billion won when requesting arrest warrants, but additional investigations revealed an additional 4.1 billion won.

In the first instance, the Prosecutors' Office sought seven years and three years in prison for them respectively. The court found Mr. Park guilty of embezzling 2 billion won from company funds but declared 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 received a three-year-and-six-month prison sentence with the court citing "concerns over flight risk" and ordering his detention in court. Additionally, Ms. Lee was partially convicted, receiving one year in prison, two years probation, and 120 hours of social service.

During that trial, it was confirmed that the embezzlement amounts admitted by them exceeded 2 billion won for Rael and Media Boom. The two acknowledged wrongdoing regarding: Mr. Park's use of a corporate card under Park Soo-hong's management company name for personal purposes, registering fake employees on the company roster, and misappropriating funds in the form of salaries; and using company funds to pay for private legal counsel fees 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 wanted to testify." He added, "Feeling aggrieved that they freely used my assets simply because it was a family company." He further argued: "Even if we calculate that from real estate valued at 4.3 billion won acquired by his older brother and sister-in-law between 2014 and 2017, they saved all their salaries and dividends over four years without spending a single won, there is still a shortfall of 2 billion won."

Park Soo-hong emphasized: "I heard from my older brother and sister-in-law the phrase 'financial management for you.' Until our partnership was dissolved, I had no real estate registered in my name. All assets were shared equally between them at 50% each." He stressed, "Sacrificing one person to benefit others is absolutely unacceptable, even among family members. Such incidents must not happen again."

Additionally, Ms. Lee, the sister-in-law, 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 a closing argument session on the 23rd at the Seoul Western District Court's Criminal Appeal Division No. 1 regarding charges of violating the Act on Promotion of Information and Communications Network Utilization and Information Protection (defamation), despite arguing for acquittal after the Prosecutors' Office sought a 10-month prison sentence, she stated: "Although this was an extremely private conversation with acquaintances, I apologize for hurting Park Soo-hong and Kim Da-ye through these conversations. I feel ashamed of my unwise and rash words and actions." She continued, "I realized how foolish and shameful my behavior was. I deeply reflect on this and will ensure such incidents never happen again. I will become a mother who does not bring shame to my children." The appeal judgment announcement is scheduled for the 23rd.

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

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

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*This content was translated by AI.