Prosecutors dismiss, clear two ex-officials in ‘50 billion won club’ case
In short
The Seoul Central District Prosecutors’ Office dismissed a complaint against former Prosecutor General Kim Soo-nam in June and cleared former Blue House senior civil affairs secretary Choi Jae-kyung in April over the so-called “Daejang-dong 50 billion won club” allegations, legal circles said. The allegations stemmed from a recording released in September 2021 that named six legal, political and media figures. Four of the six have already been indicted.
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The Seoul Central District Prosecutors’ Office dismissed a complaint against Kim Soo-nam, a former prosecutor general, and cleared Choi Jae-kyung, a former senior secretary for civil affairs at the Blue House, over the so-called “Daejang-dong 50 billion won club” allegations, according to legal circles cited by Kyunghyang Shinmun and Yonhap News. Kyunghyang and Yonhap reported that the complaint against Kim was dismissed in June and that Choi was cleared in April. Newsis carried the same decision in its headline. [ 1 , 2 , 3 ]
Kyunghyang and Yonhap explained that 각하 is a disposal that ends a case without judging the specific charges when the requirements are not met. Yonhap identified the handling office as the Seoul Central District Prosecutors’ Office, now referred to as the Seoul Central District Public Prosecution Office. Kyunghyang reported that prosecutors conducted a written investigation of the two men in 2022 and had since been reviewing how to dispose of the cases. [ 2 , 3 ]
The allegations trace back to September 2021, when a recording by accountant Jung Young-hak was made public, according to both outlets. The documents say the recording contained indications that Kim Man-bae, major shareholder of Hwacheon Daeyu Asset Management, planned to distribute Daejang-dong development proceeds to six high-ranking legal, political and media figures, with 5 billion won each. The six named in the recording were Kwon Soon-il, a former Supreme Court justice; Park Young-soo, a former special prosecutor; Kwak Sang-do, a former lawmaker; Hong Sun-geun, chairman of the Money Today Media Group; Kim Soo-nam; and Choi Jae-kyung. [ 2 , 3 ]
Four of the six, apart from Kim and Choi, have already been indicted. Kwak Sang-do was acquitted at first instance on bribery charges and is currently on appeal, and Park Young-soo was acquitted on a charge of agreeing to receive 5 billion won and is awaiting an appellate ruling, both outlets reported. Kwon Soon-il, indicted for violating the Attorney-at-Law Act by conducting legal work for Hwacheon Daeyu without registering as a lawyer, received a dismissal of prosecution at first instance. Hong Sun-geun was indicted over borrowing billions of won and having interest exempted, and was fined 15 million won at second instance, according to the reports. Kyunghyang described the lender as Daejang-dong private operators, while Yonhap said the borrowing was from Kim Man-bae and put the exempted interest at about 10 million won. [ 2 , 3 ]
The Newsis report’s headline concerns the same two disposals, but the article text published with it describes the Nuri rocket’s small satellite mission and provides no detail on the prosecutorial decision. Neither Kyunghyang nor Yonhap reported any response from Kim or Choi, or whether prosecutors could revisit the cases. [ 1 , 2 , 3 ]
Why it matters
The disposal ends the prosecutorial stage for two former top law enforcement and presidential-office officials who were among six people named in the Daejang-dong-related recording. The documents give no indication of further prosecutorial action against them, while four others named in the same recording remain in or awaiting trial.
Key facts
- The Seoul Central District Prosecutors’ Office dismissed (각하) the complaint against former Prosecutor General Kim Soo-nam in June, according to legal circles. [ 1 , 2 , 3 ]
- Former Blue House senior civil affairs secretary Choi Jae-kyung was cleared (무혐의) in April, according to legal circles. [ 1 , 2 , 3 ]
- 각하 is a disposal that ends a case without judging specific charges when the requirements are not met. [ 2 , 3 ]
- Prosecutors conducted a written investigation of the two in 2022 and then reviewed how to dispose of the cases. [ 2 ]
- The “50 billion won club” allegations emerged after a recording by accountant Jung Young-hak was made public in September 2021. [ 2 , 3 ]
- The recording contained indications that Kim Man-bae, major shareholder of Hwacheon Daeyu Asset Management, planned to give 5 billion won each to six figures: Kwon Soon-il, Park Young-soo, Kwak Sang-do, Hong Sun-geun, Kim Soo-nam and Choi Jae-kyung. [ 2 , 3 ]
- Four of the six — Kwak Sang-do, Park Young-soo, Kwon Soon-il and Hong Sun-geun — have already been indicted. [ 2 , 3 ]
- Kwak Sang-do and Park Young-soo were acquitted at first instance and are in or awaiting appeal proceedings; Kwon Soon-il received a dismissal of prosecution at first instance; Hong Sun-geun was fined 15 million won on appeal. [ 2 , 3 ]
Confirmed by several sources
- Former Prosecutor General Kim Soo-nam received a dismissal (각하) and former Blue House senior civil affairs secretary Choi Jae-kyung a clearance (무혐의) over the “50 billion won club” allegations. [ 1 , 2 , 3 ]
- 각하 is a disposal that closes a case without judging the specific charges when the requirements are not met. [ 2 , 3 ]
- The allegations arose from a recording released in September 2021 that named six people, and four of them have already been indicted. [ 2 , 3 ]
Still unclear
- The Newsis report carries the dismissal and clearance in its headline, but its article text concerns the Nuri rocket’s small satellite mission and gives no detail on the prosecutorial decision. Only the headline of document 1 addresses this event; no detail from it can be used.
- The exact dates in April and June on which the two disposals were made are not given. Both documents say only “April” and “June.”
- The identity of the lender to Hong Sun-geun is described differently: Kyunghyang Shinmun says Daejang-dong private operators, Yonhap says Kim Man-bae, and only Yonhap gives the exempted interest as about 10 million won. The two documents disagree on the counterparty and level of detail.
- Whether prosecutors could revisit either case, and what the two men have said about the allegations, is not stated. No document reports a response from Kim or Choi or any possibility of further action.
What local media are saying
Timeline, local time
- Accountant Jung Young-hak’s recording is made public, raising the “50 billion won club” allegations. [ 2 , 3 ]
- Prosecutors conduct a written investigation of Kim Soo-nam and Choi Jae-kyung. [ 2 ]
- Choi Jae-kyung is cleared (무혐의). [ 2 , 3 ]
- The complaint against Kim Soo-nam is dismissed (각하). [ 2 , 3 ]
- Newsis publishes its report carrying the decision in the headline. [ 1 ]
- Kyunghyang Shinmun reports the two disposals, citing legal circles. [ 2 ]
- Yonhap reports the two disposals, citing legal circles. [ 3 ]