Police forwarded coercion charges to prosecutors within a month of receiving complaint; prosecutors declined to indict

The Seoul Courts Complex, which houses Seoul Central District Court and Seoul High Court. [Yonhap]
The Seoul Courts Complex, which houses Seoul Central District Court and Seoul High Court. [Yonhap]

A court has ruled that prosecutors were justified in declining to indict the former head of Yakson Myeongga over gapjil allegations — claims that he coerced franchise owners into signing unfair contracts. The complainants have since filed a further appeal, meaning the Supreme Court will have the final say on whether the decision not to prosecute was proper.

Seoul High Court's Criminal Division 30, presided over by Judge Kwon Hyeok-jung, rejected a petition on Sept. 1 seeking a court order to compel indictment of the former Yakson Myeongga head, identified only as A. The petition mechanism allows complainants who have been notified that no charges will be filed to ask the high court with jurisdiction over the relevant prosecutors office to review whether the decision not to prosecute was warranted.

The franchise owners had filed a coercion complaint with police against A in March, alleging that in May 2019 he demanded they sign consent forms raising incubating consulting fees from the existing 2 to 12 percent range to 15 percent, and implied that refusal would result in serious consequences — including removal from their positions as branch directors, contractual disadvantages, and the withdrawal of business support.

The complaint also alleged that in June 2019, A demanded owners sign forms agreeing to raise monthly training fees to 1 million won ($747), again implying serious repercussions for those who refused, effectively compelling their signatures against their will. The franchise owners separately filed a breach-of-trust complaint against A with police as well.

The Gangnam Police Station, which investigated the complaint, forwarded the case to prosecutors in April after finding the coercion charges credible. With the seven-year statute of limitations on coercion set to expire within one to two months, police moved quickly and referred the case to prosecutors in under a month.

Prosecutors, however, reached a different conclusion. Seoul Central District Prosecutors Office's Criminal Division 7, headed by Cho Yun-cheol, declined to indict A in May, finding the charges insufficiently proven to bring to trial.

The complainants challenged that decision by filing a petition with Seoul High Court. Under the Code of Criminal Procedure, the statute of limitations is suspended once such a petition is filed, until the court's ruling becomes final.

Seoul High Court nonetheless upheld the prosecutors' decision and rejected the petition on Sept. 1. The complainants filed a further appeal on Monday, and the Supreme Court is expected to issue the final ruling on whether the decision not to prosecute was appropriate.

Meanwhile, the complainants have also filed a complaint against the prosecutor who issued the non-indictment decision, accusing him of perverting the course of justice. That case remains pending with police.


bell@heraldcorp.com