Broadcaster Park Soo-hong (56) has lost the first trial of his 9.8 billion won damages lawsuit filed against his older brother and sister-in-law.
On November 13, the 12th Civil Division of the Seoul Western District Court (Presiding Judge Kim Jin-young) dismissed the claim against his sister-in-law Ms. Lee (55), rejected the claim against his older brother Park Jin-hong (58), and ruled that the plaintiff bear all litigation costs. Neither party attended the court proceedings on this day.
Previously in 2021, Park Soo-hong's side revealed that his brother and sister-in-law had embezzled his appearance fees over 30 years and filed a complaint against them on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement). In the criminal trial, his older brother Park was sentenced to three years and six months in prison, while his wife Lee received a one-year prison term suspended for two years, with the sentences finalized by the Supreme Court on February 26 of this year.
This ruling is the outcome of the civil lawsuit that had been filed alongside the criminal complaint. Park Soo-hong initially claimed 11.6 billion won in damages, but the claimed amount was adjusted to 9.8 billion won during the proceedings.
Park Soo-hong's side asserted that they agreed in July 2020 to distribute profits at a 7-to-3 ratio, and that since there was an individual agreement to share profits at the same ratio even prior to that, 70% of the corporate net assets and 70% of the agency's shares should be transferred to him. In addition, they claimed that the older brother Park embezzled money from personal accounts, making him liable for damages due to default and tortious conduct.
However, the court found it difficult to recognize that a personal profit-sharing agreement at a 7-to-3 ratio existed prior to the conclusion of the contract. The court ruled, "It appears that the management of entertainment activities and the payment of revenues were carried out through corporations, and all claims for 70% of net assets and shares based on the premise of an individual agreement are without merit."
Furthermore, regarding the allegation of personal fund embezzlement, the court explained, "While causing harm by embezzling company money despite substantial revenue being generated through Park Soo-hong's activities deserves criticism, it is difficult to hold the defendant individually liable once Park Soo-hong attributed his activity earnings to the company."
The court added that it took into consideration circumstances including that the defendant was acquitted of using personal funds in the prior criminal trial, that there was a high likelihood that part of the embezzled funds was used by Park Soo-hong, and that certain amounts had been transferred to his brother's account.
(SBS Entertainment News | Kim Ji-hye)
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