Hong Jung-wook Sued Over Alleged Low-Price Sale of Company Building: "Groundless"

Suspicion of Improper Company Fund Payments to Family Members
Former Rep. Hong's Side: "No Issues with Office Building Sale... Just Malicious Claims"

Former Hannara Party lawmaker Hong Jung-wook. Photo by Yonhap News

[Asia Economy Reporter Kim Suwan] Hong Jung-wook, a former member of the Grand National Party (the predecessor of the People Power Party) who is rumored to be returning to politics, has been accused of breach of trust and other charges related to the sale of the Herald media company’s office building during his management of the company.

According to the legal community on the 3rd, an acquaintance of former lawmaker Hong, Mr. A, filed a complaint with the Seoul Central District Prosecutors' Office at the end of last month, accusing Hong of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

Mr. A claims that when Hong sold the Korea Herald building located in Jung-gu, Seoul, in March 2005, he sold it at a price lower than the market value, causing significant financial damage to the Korea Herald side.

Additionally, Mr. A has raised suspicions that Hong falsely registered his family members as employees of Korea Herald and its affiliates and paid wages improperly.

However, the breach of trust charge under the Act on the Aggravated Punishment of Specific Economic Crimes that Mr. A alleges is already beyond the 15-year statute of limitations. The prosecution has currently assigned this case to Investigation Division 1.

In response, Hong’s side stated in a press release sent to Yonhap News, "The sale of the office building was conducted transparently 15 years ago, and the complainant’s claims are not worth considering," adding, "These are malicious allegations intended to tarnish the reputation of a public figure or to gain economic benefits with impure motives." They also denied the allegations of unfair wage payments to family members as "groundless."

Earlier, Hong posted a cryptic message on his social networking service (SNS) saying, "It has been enjoyable so far," which sparked speculation that he might be preparing to return to politics. Related stocks also surged on the possibility of Chairman Hong’s political comeback.

Meanwhile, Hong entered politics as a member of the Grand National Party (now People Power Party) in the 18th National Assembly. However, in December 2011, about five months before the 19th general election, he suddenly announced his retirement from politics. Since then, he served as chairman of Herald Media but sold it last May and has been managing Organica, a company pursuing eco-friendly food products.

This content was produced with the assistance of AI translation services.