Democrats' Push to Abolish Breach of Trust Law: Critics Call it a Ploy to Bury Daejang-dong Scandal
The People Power Party (PPP) has criticized the Democratic Party of Korea (DPK)'s proposal to abolish the breach of trust law, arguing it's a deliberate attempt to evade responsibility for the Daejang-dong scandal. PPP Chief Spokesperson Park Sung-hoon pointed out the potential changes in the legal liabilities of those involved in the Daejang-dong case and DPK leader Lee Jae-myung if the law is repealed. PPP Representative Joo Jin-woo stated that abolishing the law could impact Lee Jae-myung's trials, expressing concerns about potential changes in the possibility of punishment in cases related to the Daejang-dong development corruption, Baekhyeon-dong development preferential treatment allegations, and illegal use of corporate credit cards.
The PPP has raised suspicions of a 'Daejang-dong shield,' citing the request by Nam Wook, a private developer involved in the Daejang-dong project, for the release of assets frozen by the prosecution through asset preservation orders. PPP Spokesperson Lee Choong-hyung criticized Nam Wook's request to recover assets as a disregard for judicial procedures. Nam Wook's side formally requested the release of asset preservation in a written opinion submitted to the prosecution, stating that they are even considering filing a lawsuit against the state for damages if the prosecution does not accept their request. Nam Wook's side is reportedly emphasizing that the asset preservation is causing significant disruption to business operations.
Nam Wook was not sentenced to any forfeiture in the first trial of the Daejang-dong case, and the possibility of forfeiture being imposed in the second and third trials has decreased as the prosecution has waived its right to appeal. There are various interpretations within the legal community regarding the prosecution's decision to waive the appeal. During the investigation of the Daejang-dong development project, the prosecution took measures to preserve approximately 207 billion won in assets belonging to private developers, including Nam Wook. This was a measure to recover illegal profits and prevent the concealment of criminal proceeds. In Nam Wook's case, assets worth approximately 50 billion won are known to have been frozen.
Nam Wook's request for the release of asset preservation is a procedure based on the Criminal Procedure Act, and the court will decide whether to release it after comprehensively considering the prosecution's opinion and Nam's arguments. Some in the legal community speculate that the court may decide to release the asset preservation, considering Nam's failure to be sentenced to forfeiture in the first trial and the prosecution's decision to waive the appeal. The Democratic Party argues that the bill to abolish breach of trust is a measure to boost the economy and improve the corporate business environment, emphasizing that the ambiguous requirements of breach of trust stifle business activities. The People Power Party calls the Democratic Party's argument a 'sophism,' criticizing that the abolition of breach of trust is intended to protect those involved in the Daejang-dong case and obstruct the investigation. The bill to abolish breach of trust is currently pending in the National Assembly's Legislation and Judiciary Committee, and it is unlikely that the bill will pass due to differences in opinion between the ruling and opposition parties.
