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Supreme Court upholds prison term for ex-Gyeonggi official in SBW bribery case

Published: 05 Jun. 2025, 13:08 Updated: 06 Jun. 2025, 09:19

Lee Hwa-young, former vice governor for of Gyeonggi, speaks at a National Assembly hearing on Oct. 25, 2025. [NEWS1]

The Supreme Court on Thursday upheld a seven-year and eight-month prison sentence for former Gyeonggi Vice Gov. Lee Hwa-young, who was convicted of taking bribes in connection with alleged illegal remittances to North Korea by underwear maker Ssangbangwool (SBW) Group.

The court upheld a lower-court ruling that sentenced Lee to seven years and eight months in prison — seven years for violations of the Act on the Aggravated Punishment of Specific Crimes and the Foreign Exchange Transactions Act, and eight months for violating the Political Funds Act. The court also confirmed a fine of 250 million won ($184,000) and the forfeiture of 325.95 million won.

Lee was indicted for receiving 334 million won in bribes and political funds from SBW between July 2018 and July 2022. He was also accused of participating in the group’s unauthorized remittance of $8 million to North Korean officials.

The case centers on allegations that SBW paid $5 million to support a smart farm project that Gyeonggi had pledged to the North and an additional $3 million to cover the cost of a planned trip to North Korea by then-Gyeonggi Governor and current President Lee Jae-myung.

In the first trial, Lee Hwa-young was found guilty on most charges and sentenced to nine years and six months in prison — eight years for bribery and foreign exchange violations, and one year and six months for political fund violations — along with a fine and forfeiture order.

Prosecutors raid an office of the Gyeonggi Provincial Office in Suwon-si Gyeonggi as a part of its search of its investigation into allegations of cash remittance to North Korea by the Ssangbangwool (SBW) group in February 2023. [NEWS1]

Lee Hwa-young claimed during his trial that the $5 million invested in a smart farm project by SBW was a move to “boost the company’s stock price.” However, the court did not accept that argument.

In its appellate ruling last December, the court stated that “while the company may have anticipated a boost in stock value, this was merely the main motive behind former Chairman Kim Seong-tae’s decision to accept Lee’s request for proxy payment.”

The court also rejected arguments concerning payments made to cover costs for the North Korea trip.

“Had there been no request from the former vice governor, it is unlikely that Chairman Kim and others would have contacted North Korean officials or committed to inter-Korean projects,” the ruling said. The claim that Kim’s testimony had been tainted was also dismissed, with the court finding his statements “generally consistent and specific, thus credible.”

The appeals court upheld the guilty verdict but reduced the sentence to seven years and eight months. The Supreme Court has now confirmed that ruling.

The SBW Group's office in Yonsan District, central Seoul [NEWS1]

The Supreme Court’s final ruling is expected to impact the separate trial of President Lee, who is facing third-party bribery charges related to the same North Korea remittance scheme.

Prosecutors indicted President Lee in June last year, alleging that he colluded with Lee Hwa-young to have Kim pay $8 million to North Korea between 2019 and 2020, when President Lee was Gyeonggi governor at the time. In return, Kim was allegedly promised provincial support and guarantees for SBW’s inter-Korean projects.

President Lee’s case is based on the same evidence as Lee Hwa-young’s. The core issue is whether prosecutors can prove that the two colluded. In the lower court ruling for Lee Hwa-young, the court wrote it was "sufficiently convinced” by Kim’s repeated statements that former Vice Gov. Lee told him, “Of course I reported it to Gov. Lee [Jae-myung].”

However, the appellate court did not determine whether a report was actually made to then-Gov. Lee Jae-myung, and the Supreme Court, as a court of law, did not rule on factual matters.

A key challenge for prosecutors will be Lee Hwa-young’s reversal of his earlier testimony. While he initially acknowledged reporting and receiving instructions from then-Gov. Lee, he has denied any connection since 2023.

Lee Hwa-young also accused prosecutors of coercing testimony unfavorable to the president, even claiming they held a “salmon and soju party” at the prosecutor’s office — an allegation the court did not accept.

President Lee Jae-myung speaks during a public safety and security inspection meeting at the presidential office in Yongsan, central Seoul, on June 5. [YONHAP]

President Lee’s trial is scheduled to resume on July 22 at the Suwon District Court. In December last year, President Lee’s legal team filed a request to recuse the court division, saying it was “difficult to expect a fair trial” because the court had “presided over and ruled [guilty] in the first-instance trial of former Vice Gov. Lee Hwa-young, which is based on the same facts.”

However, the request was dismissed in February after the presiding judge was replaced in a judicial reshuffle, and proceedings resumed.

The trial could be suspended if the court determines that Article 84 of the Constitution, which grants a sitting president immunity from criminal prosecution, applies to ongoing cases.

Conversely, if the court allows proceedings to continue, the case could still be halted if a proposed amendment to the Criminal Procedure Act passes. The amendment, dubbed the "trial suspension bill" and backed by the Democratic Party, would allow the president to suspend trials by promulgating them in the Cabinet.

Update, June 5: More background information on the case added.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HAN YOUNG-HYE, KIM JUN-YOUNG [[email protected]]