Rehabilitation Court Orders Eastar Air to Explain Reason for Lawmaker Lee Sang-jik's Nephew's Return to Work

Independent lawmaker Sang-jik Lee. Photo by Dong-joo Yoon doso7@

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The court has requested Eastar Jet to explain the reason for the return to work of Lee Sang-jik's nephew, an independent lawmaker who was released on bail after being indicted and detained on charges of causing massive damage to the company.

According to the legal community on the 6th, the Seoul Rehabilitation Court, Rehabilitation Division 1 (Presiding Judge Seo Kyung-hwan, Chief Judges Jeon Dae-gyu and Kim Chang-kwon) requested Eastar Jet, which is undergoing rehabilitation proceedings, to submit a written explanation regarding the reason why Lee’s nephew, Finance Team Manager Lee, has been coming to work and performing duties.

A court official stated, "This was instructed to clarify the circumstances as part of the overall management and supervision of the rehabilitation process."

Lee was indicted and detained on charges of causing damage to the company by selling approximately 5.2 million shares (about 54 billion KRW) of Eastar Jet held by group affiliates to a specific affiliate for about 10 billion KRW around December 2015.

He is also accused of causing about 6 billion KRW in damages by arbitrarily evaluating the value of bonds held by Eastar Jet group affiliates from 2016 to 2019 and repaying debts early through this method.

After Lee was released on bail by the Jeonju District Court on the 12th of last month and returned to work, the Eastar Jet Pilots’ Union of the Public Transport Union (hereinafter the Pilots’ Union) raised concerns about his presence at the company.

They pointed out that it is inappropriate for a person who caused damage to the company, was indicted and detained, and should have been dismissed to participate in the rehabilitation process, raising concerns about possible evidence tampering.

Meanwhile, Lee Sang-jik is currently on trial after being indicted and detained in May on charges including embezzlement and breach of trust involving about 50 billion KRW related to Eastar Jet.

On June 16, he was sentenced in the first trial for violating the Public Official Election Act to 1 year and 4 months in prison with a 2-year suspended sentence, which corresponds to losing his parliamentary seat, and he has appealed the decision.

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