'Hujeho' Wins Criminal Judicial Cooperation Data Disclosure Lawsuit on 'Tax Evasion'

[Asia Economy Reporter Seongpil Cho] A court ruling has been issued stating that former Daeju Group Chairman Heo Jae-ho, who was indicted on tax evasion charges, must disclose materials related to criminal judicial cooperation that he requested from the government, claiming the statute of limitations had expired.

According to the legal community on the 9th, the Seoul Administrative Court Administrative Division 3 (Presiding Judge Yoo Hwan-woo) ruled in favor of Heo in a lawsuit he filed against the Minister of Justice to cancel the decision to withhold information. The court dismissed the request regarding information on whether a request for extradition had been made, judging that Heo did not have a legal interest to seek cancellation of the disposition. Dismissal is a ruling made without judging the main issue when the lawsuit requirements are not met. However, the court ordered the cancellation of the Ministry of Justice's decision to withhold information concerning whether an international investigation cooperation request had been made to New Zealand, where Heo currently resides, stating that such information is not subject to non-disclosure under the Information Disclosure Act.

Heo was previously indicted without detention in 2019 on charges of violating the Act on the Aggravated Punishment of Specific Crimes (tax evasion). However, Heo, residing in New Zealand, did not attend the first trial in August of that year due to heart disease and difficulties in travel caused by COVID-19. Amid this, in June last year, Heo requested information disclosure to prove the expiration of the statute of limitations for the tax evasion crime. Specifically, he requested ① issuance of documents confirming whether the government had ever requested extradition of a criminal to New Zealand, where Heo resides, and ② issuance of documents confirming whether the government had ever requested international investigation cooperation with New Zealand.

The Ministry of Justice refused, stating that the information Heo requested falls under non-disclosure information under the Information Disclosure Act. Heo filed an objection to this decision, but when the Ministry of Justice dismissed it, he filed this lawsuit. In court, the Ministry of Justice argued regarding request ② that "disclosing information related to criminal judicial cooperation could spread awareness of disclosure, undermining South Korea's trust in confidentiality," and "it could negatively affect South Korea's future agreements on criminal judicial cooperation with other countries." However, the court stated, "Even if information ② is disclosed, it is difficult to see it as a violation of the criminal judicial cooperation treaty," and "it is hard to recognize that disclosing information ② would significantly harm the nation's vital interests."

Heo is currently on trial for failing to pay about 500 million KRW in capital gains tax and about 6.5 million KRW in comprehensive income tax on dividends from nominee stocks during the sale of shares of Daehan Fire & Marine Insurance held under the names of three people, including H, with whom he was in a de facto marital relationship from May to November 2007. Heo's side has argued the statute of limitations in the related trial. On the other hand, the prosecution holds that the statute of limitations for tax evasion crimes involving more than 500 million KRW is 10 years and that the statute was suspended from August 2015, when Heo left the country. The Gwangju District Court Criminal Division 11 (Presiding Judge Jeong Ji-seon), which is handling the case, issued a warrant for Heo's arrest last November, judging that there is a risk of flight as Heo has not appeared in court for over a year. The warrant is valid until November 5 of this year. The place of detention is the Gwangju District Court courtroom.

Meanwhile, Heo was previously indicted for tax evasion and was sentenced to a fine of 25.4 billion KRW in the 2010 appellate trial. After the appellate ruling, he fled to New Zealand but returned in March 2014 and served what was called "emperor labor," where 500 million KRW was deducted daily instead of paying the fine, which sparked nationwide outrage. At that time, Heo stopped the labor after five days amid controversy and fully paid the fine in September 2014.

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