SOUTH KOREA: Amnesty to convicted frauds and tax evaders will undermine the Korean judiciary and the morale of the people

The granting of amnesties by the president to a number of tycoons, who were convicted by the Korean courts after affording them fair trial, will have the impact of creating the impression that the executive is undermining the judiciary. It will also push back the long and arduous struggle of the people to develop a rule of law system within the country. When politicians of a rival political party, when in power can override the judgements of the courts, it passes a message of the politicisation of the justice and judicial process. Within a few months of coming to power the present regime has dealt a serious wound to the very fabric of the modern democratic system of Korea, which if not cured as urgently as possible, may infect the entire system.

Korea acquired a prestigious place in 1987 by its rapid and remarkable developments towards the strengthening of the democratic institutions of the country and undoing the extreme abuses of power exercised by the executive through ruthless and brutal military regimes. The historic moment at which this determination was shown was when the Korean courts convicted two former presidents for various crimes which included the causing of a massacre and corruption. That was an extremely significant moment since at that point Korea entered the age of maturity as a democracy by subordinating the executive to the judicial process and the decisions of the judiciary.

The sign of a functioning democracy is the strength of the people to express themselves against their government in a peaceful manner. The Korean achievements since 1987 were a manifestation that the people of Korea have come to a position of strength and were not slaves of a dictatorial state. The sign of that power is the ability to control powerful business establishments and to bring them under the law. The ultimate strength of a democracy lies in the ability of a system to control abuse of power and corruption. Sadly, within a period of less than six months the present regime has undermined all these achievements and disgraced the democracy of Korea.

The argument that convicted prisoners are needed for the purpose of economic development is a shameless political statement. If the present regime believes that without persons convicted of fraud and tax evasion it cannot ensure economic development the regime’s message on that score will, among other things, damage the economic development itself. This is like putting a cat in with the pigeons under the pretext that the pigeons need exercise. Everyone who has an inclination to be corrupt and evade paying their taxes will now find that the new regime is encouraging them to do so. Corruption, when encouraged can spread so fast as to be beyond the imagination. When corruption spreads like that it infects the civil service and all the institutions of governance. We give below a list of the persons who have been given amnesty by the new regime who have originally been convicted by courts on fraud and tax evasion.

1) Mr. Choi Tae-won, CEO from SK company was convicted of window-dressing worth a trillion 558,700 million (USD 1,507,886,341)

2) Mr. Jeong Mong-gu, CEO from Hyundai-Kia motors was convicted of usurpation worth 100,000 million (USD 96,739,998)

3) Mr. Kim Seung-youn, CEO from Hanwha Company is included; His son was beaten and he called thugs to avenge the man who had beaten his son. He is given amnesty because he is CEO.

4) Mr. Yang Yun-jae, former deputy Seoul mayor was convicted and punished with 5 years imprisonment and 255,000,000 KRW (USD 246,687) as a forfeit by Supreme Court in 2006. Mr. Yang worked for developing Cheonggye stream with the President when the President served as a Mayor in Seoul.

Mr. Son Gil-seong, former CEO from SK company, Mr. Choi won-seok, former CEO from Dong-A Construction, Mr. Kim Yun-gyu, former representative from Hyundai Construction and Mr. Choi Soon-young, former CEO from New Dong-A group. Total number of businessmen received amnesty is 74.

The list of newspapers that have supported the president during the presidential election and used to write articles for the government is as follows.

1) Mr. Bang Sang-hoon, CEO from Cho-Sun Newspaper, charged for tax evasion worth 2,300,000,000 KRW (USD 2,225,020) and for usurpation worth 2,500,000,000 KRW (USD 2,418,500) convicted and granted of a stay of execution.

2) Mr. Kim Byung-geon, former deputy CEO from Dong-A Newspaper, charged for tax evasion worth 4,400,000,000 KRW (USD 4,256,650)

3) Mr. Cho Hee-jun, former CEO from Kuk-min Newspaper, charged for tax evasion worth 2,500,000,000 KRW (USD 2,418,500) and for usurpation worth 108,300,000,000 KRW (USD 104,769,417)

4) Mr. Song Phil-ho, chair of the board from Joong-ang Newspaper, charged for tax evasion worth 650,000,000 KRW (USD 628,810)

Politicians and those who were convicted of violation of election act also received amnesty. Those are about 2,000.

Public officials who were given departmental punishment before the new government also received amnesty. The number is about 341,000.

The examples of countries that have developed economically in the Asian region show that one of the most important reasons for their success has been the effective elimination of corruption. The Independent Commission against Corruption in Hong Kong has been the basis for the dynamic developments of that territory. If an amnesty like the one which was given by the new regime of Korea is proposed by any administration in Hong Kong without doubt there would be an enormous social revolt. Many persons who have in any way tried to interfere with the proper implementation of the laws relating to corruption have lost their jobs as people value their achievements in the control of corruption.

Document Type : Statement
Document ID : AHRC-STM-212-2008
Countries : South Korea,