Previous People Power Party leader Han Dong-hoon criticized a faction within the Democratic Party, which is pushing for the removal of charg...
Previous People Power Party leader Han Dong-hoon criticized a faction within the Democratic Party, which is pushing for the removal of charges against President Lee Jae-myung's legal case, by stating, "You might as well take bribes."
On the 21st, former Representative Han, who participated in a discussion on the Chosun Ilbo YouTube channel *Pan-Ikgi*, addressed a query regarding the potential dismissal of charges in the president's criminal case, following recent personnel changes in the prosecution and the withdrawal of the appeal in the Daejang-dong case. He remarked, "Accepting bribes does not undermine the judicial system, but dismissing charges, among other actions, does."
He referred to the recent decision by the prosecution to drop the appeal in the Daejang-dong case as "a move toward authoritarianism," stating, "If they sweep it under the rug and the public loses memory of it, they will go ahead with dropping the charges."
The Ministry of Justice has recently named Park Cheol-woo, the director of the Anti-Corruption Division within the Supreme Prosecutors’ Office, as the head of the Seoul Central District Prosecutors’ Office. Park played a significant role in the decision to drop the Daejang-dong appeal. It is reported that Prosecutor General Park, who held important roles during the Moon Jae-in administration, directed the Daejang-dong trial team at the Seoul Central District Prosecutors’ Office to "re-examine the appeal."
As the central individual linked to the Daejang-dong appeal withdrawal, which led to widespread criticism from prosecutors, was named head of the country's biggest prosecutors' office, some believe the prosecution might drop charges in the ongoing criminal cases against the president at the Seoul Central District Prosecutors’ Office, including those related to Daejang-dong, Baekhyeon-dong, Wirye, and Seongnam FC.
The Democratic Party has taken an aggressive stance, with Representative Jung Chung-rae stating during the Supreme Council meeting on the 12th that "the (Daejang-dong) case, which was wrongly accused, should have the charges dropped."
◇ Revelation of the 'Smoking Gun' in the Lone Star Lawsuit
Former Representative Han shared insider accounts of the inquiry into the "Lone Star stock manipulation" case, which he was personally engaged in, concerning the recent international investment dispute arbitration annulment lawsuit where the South Korean government prevailed in all its claims against Lone Star.
In 2003, under the leadership of Roh Moo-hyun, Korea Exchange Bank was acquired by Lone Star, a well-known fund based in Texas, which sparked debate about the "fire sale" of the bank. The Board of Audit and Inspection found problems in the selling procedure, leading the Central Investigation Department of the Supreme Prosecutors’ Office to initiate an inquiry.
At that time, the Central Investigation Department assigned Prosecutor Han Dong-hoon, who was preparing to go back to active duty following the completion of the Hyundai Motor investigation, to examine the Financial Supervisory Service (FSS) documents concerning Lone Star. Former Representative Han mentioned, "After going through the documents for several sleepless nights, I became convinced about the stock manipulation."
Around November 20, 2003, Lone Star sent a message through Korea Exchange Bank stating, “We are considering a capital reduction (減資) for Korea Exchange Bank Card,” causing the stock price to plummet. However, it was revealed that they did not actually intend to reduce capital but had spread false information to drive down the stock price.
Prosecutor Han Dong-hoon conducted a search and seizure not at Lone Star or Korea Exchange Bank Card's headquarters, but at "Citigroup Global Markets Securities," a division of Citigroup. He stated, "I believed that if they had genuinely considered a capital reduction, investment banks (IBs) would have examined it, and evidence could have been found."
Prosecutor Han personally sent a letter to the court requesting a search and seizure warrant, and among the documents collected under this warrant, the "smoking gun" was discovered. A conversation was uncovered in which an official from an investment bank asked, "Shouldn't we begin preparing for KB's capital reduction?" while another official replied, "Capital reduction is not an option."
Former Representative Han stated, “I thought, ‘This is it,’ and I was truly excited.” This was because the conversation that followed the rumor about the capital reduction of Korea Exchange Bank Card, which claimed, “Capital reduction is not under consideration” and “There’s no need to be concerned,” provided solid proof that misleading information was being circulated to lower the stock price.
Following many developments, former Representative Han secured confessions from them and filed charges of stock manipulation against Lone Star Korea Representative Yoo Won-hyun and others. The case initially led to a three-year prison sentence in the first trial, but was later dismissed in the second trial. After the Supreme Court reversed the acquittal and sent the case back with a guilty verdict, the conviction was confirmed in March 2011.
During this entire period, public sentiment against Lone Star became more negative, and following several changes, they sold the Korea Exchange Bank and exited in 2011. Afterward, Lone Star initiated an international arbitration case, seeking 5 trillion South Korean won in damages, arguing, "The South Korean government targeted us, leading to missed opportunities for the sale." Former Representative Han stated, "It was as if they poisoned the well from which they themselves drank."
An international arbitration case that started in 2012 ended in 2022 during the tenure of Former Representative Han as Minister of Justice. The decision required South Korea to pay 4.6% of the total claimed sum of 5 trillion Korean won, equivalent to 216.5 million dollars. This result considered Lone Star's conviction for stock market manipulation.
Former Congressman Han remarked, "Many people thought this was acceptable, and there were significant worries regarding the higher financial burden that could result from filing an appeal," and continued, "However, I felt we should not proceed in that manner and took the lead in initiating the appeal."
On the 18th, the Lone Star Cancellation Committee of the International Centre for Settlement of Investment Disputes (ICSID) decided to cancel all responsibilities related to paying the principal and interest of the compensation. More in-depth insider details and the complete account of the cancellation lawsuit process can be viewed on the Chosun Ilbo YouTube channel *Pan-Ikgi*.
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