Park Soo-hong loses 9.8 billion won civil suit against brother and sister-in-law

The Seoul Western District Court rejected broadcaster Park Soo-hong's 9.8 billion won damages claim against his brother and sister-in-law on the 13th, despite the pair's embezzlement convictions being finalized by the Supreme Court of Korea this past February.

Broadcaster Park Soo-hong has lost a damages lawsuit seeking approximately 9.8 billion won against his older brother and sister-in-law, a legal battle that has spanned five years. Although the older brother's embezzlement of company funds was finalized as guilty by the Supreme Court of Korea, the separate civil trial did not accept Park Soo-hong's claim for damages.

On the 13th, the 12th Civil Division of the Seoul Western District Court ruled against the plaintiff in the damages claim filed by Park Soo-hong against his older brother, Park, and his sister-in-law, Lee. The court also ordered Park Soo-hong to bear the litigation costs. This first-instance decision comes approximately five years after the lawsuit was initiated in June 2021.

Park Soo-hong originally filed a damages claim of approximately 11.6 billion won, alleging that his brother and sister-in-law unfairly used his broadcasting appearance fees and personal funds. While the claim briefly rose to 19.8 billion won following a re-examination of settlement records spanning roughly 20 years, the final amount was adjusted to approximately 9.8 billion won after recalculating the damages. Despite intense disputes over accumulated settlement data and fund flows, the civil court rejected Park's claims.

The ruling is drawing significant attention because the brother and sister-in-law's embezzlement charges had already been finalized as guilty in criminal proceedings. In October 2022, Park was taken to trial on charges of using company funds for personal use and misappropriating his brother's personal funds while managing Park Soo-hong's career through two entertainment agencies, Rael and Mediaboom, between 2011 and 2021. Lee was also judged to have participated in some embezzlement, such as the private use of corporate cards.

In the criminal trial, the responsibility of the brother and sister-in-law was recognized in stages. The first instance found Park guilty of embezzling approximately 2 billion won in company funds and sentenced him to two years in prison, but ruled him not guilty of misappropriating approximately 1.6 billion won of Park Soo-hong's personal funds. Lee was also found not guilty in the first instance.

The appellate court reached a different conclusion. Considering the specific nature of the family-run business, the court assessed the responsibility for the embezzlement more heavily, increasing Park's sentence to three years and six months and ordering his immediate imprisonment. Lee was also found guilty of some charges, receiving a sentence of one year and six months in prison, suspended for two years, and 120 hours of community service. Although Park appealed to the Supreme Court of Korea, arguing the sentence was too heavy, the appeal was rejected, and the appellate ruling was finalized this past February.

The core paradox of this case lies in the fact that Park lost the civil suit despite the embezzlement and partial responsibility being recognized in the criminal trial. While criminal trials determine the establishment of a crime and the punishment of the defendant, civil trials separately examine the occurrence and scope of the damages claimed by the plaintiff and the defendant's liability for compensation. Therefore, a criminal conviction does not immediately lead to the full acceptance of a civil claim amount.

The five-year legal dispute between family members has resulted in a civil defeat for Park Soo-hong, even after the older brother and sister-in-law's guilt was finalized in the criminal trial. Attention is now focused on whether this ruling regarding the massive damages will lead to further appeals or additional legal actions.

Read the original (Korean)