Park Jun-young and spouse cleared on insufficient evidence; case closed ahead of Oct. 2 prosecutorial overhaul
Prosecutors have dropped a breach-of-trust case against Park Jun-young, chairman of the Eulji Foundation, and his wife nearly three years after receiving the initial complaint over their alleged attempt to take over Yonhap News TV. The move comes as prosecutors rush to clear long-pending cases ahead of the Oct. 2 launch of the new Serious Crimes Investigation Agency and the Public Prosecution Service.
The Seoul Central District Prosecutors' Office's Criminal Division 7, led by Chief Prosecutor Jo Yun-cheol, on Sept. 11 dismissed charges against Park and his wife Hong Seong-hui, president of Eulji University, on grounds of insufficient evidence. Both had been investigated for alleged violations of the Act on the Aggravated Punishment of Specific Economic Crimes related to breach of trust.
Prosecutors also dismissed separate charges of violating the Punishment of Tax Evaders Act and obstructing public officials through deception, ruling those allegations did not warrant investigation. A dismissal on those grounds is a form of non-prosecution that applies when the need for further investigation is not recognized.
Yonhap established Yonhap News TV in 2011 and, under the Broadcasting Act, held a 28.01 percent stake — below the 30 percent ceiling — making it the largest shareholder. The Eulji side — comprising Eulji Hakwon at 9.92 percent, Eulji Hospital at 4.96 percent and Park personally at 3.97 percent — was the second-largest shareholder. In August 2023, Park arranged for Eulji Hospital to donate its 600,000 Yonhap News TV shares to Eulji Hakwon at no cost.
After the transfer, the Eulji side remained the second-largest shareholder behind Yonhap, but subsequently purchased additional shares, bringing its total stake to 30.08 percent. It then applied to the Korea Communications Commission to register as the largest investor in Yonhap News TV. The largest investor is defined as the entity holding the greatest number of shares or equity interests carrying voting rights in a given broadcaster.
The KCC said its review committee for the largest-investor change application had recommended disapproval, and that it would notify Eulji Hakwon of the pending decision before putting it to a vote. An earlier review committee had already voted against approval. Immediately after the KCC vote, the Eulji side said it had decided to withdraw its application.
That same month, civic groups including the Speculative Capital Watch Center filed a complaint with the Seoul Central District Prosecutors' Office, alleging that Park had improperly exercised voting rights to interfere with foundation operations, and that transferring those rights to him had conferred financial benefits while causing losses to the foundation's assets through breach of trust.
The center said the case amounted to "plunder" — with Park and other parties related to a public-interest foundation seizing Yonhap News TV, a channel Yonhap had created to fulfill its obligations under the News Agency Act, including serving the public's right to information. It added that the foundation had donated shares, exercised voting rights to commit embezzlement and breach of trust, evaded taxes, applied to change the largest shareholder and obstructed KCC officials through deception.
Prosecutors closed the case roughly three years after receiving the complaint, issuing a non-prosecution decision on grounds of either insufficient evidence or non-investigability. A representative of the center said by phone that the decision was unjust. "The media belongs to the people," the representative said. "We will file an appeal and call for reinvestigation."
With prosecutors' offices set to be abolished Thursday, prosecutors have been moving quickly to resolve long-pending cases. The Seoul Central District Prosecutors' Office's Criminal Division 1, led by acting chief prosecutor Kim Ho-kyung, on Wednesday cleared Democratic Party of Korea lawmaker Bu Seung-chan of charges that he had falsely alleged that a fortune teller known as Cheon Gong had influenced the 2022 decision to relocate the presidential residence during the Yoon Suk Yeol administration.
bell@heraldcorp.com
