Dispute Continues Between Shinhan's Ra Eung-chan and Shin Sang-hoon Over 'Namsan 300 Million Won Incident'

It has been reported that former Shinhan Financial Group Chairman Ra Eung-chan and former President Shin Sang-hoon have continued their related disputes until recently over the so-called 'Shinhan Incident,' which was sparked by the 2008 Namsan 300 million won case.

Shinhan Bank, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

According to the financial sector on the 17th, the Seoul Central District Court ruled against Shin in the subrogation claim lawsuit he filed against Ra on the 13th. Shin's claim that Ra should bear the 261 million won repaid to the bank, which was deemed embezzled funds during the investigation of the past Namsan 300 million won case, was not accepted.

The dispute between the two has been ongoing for 14 years since 2009. In 2009, Ra accused Shin of embezzling management advisory fees from former Honorary Chairman Lee Hee-geon, while Shin countered that the issue arose during the process of raising 300 million won in cash in early 2008 under Ra's instructions.

Ra instructed to raise 300 million won in cash, but since there was no cash in the secretariat at the time, the amount was withdrawn from the accounts of a Korean-Japanese shareholder and Shin himself, and compensated from corporate funds under the name of management advisory fees. At that time, Shin received a fine due to a partial guilty verdict for embezzlement in the course of duty.

The problematic 300 million won in cash was handed over to someone at the front gate parking lot of the Namsan Freedom Center in Seoul through former Shinhan Bank President Lee Baek-soon. Since it was right after the election of former President Lee Myung-bak, rumors circulated that it was given to a regime insider as a 'congratulatory donation,' but this was not revealed in investigations or trials. The results of the re-investigation by the prosecution, following the Ministry of Justice's Past Affairs Committee's recommendation during the Moon Jae-in administration, were not significantly different.

In this subrogation claim lawsuit, the court acknowledged that Ra instructed to raise 300 million won and to deliver it to a third party, but found no evidence that Shin participated in embezzlement. It was judged that Shin merely repaid his debt in the form of a deposit, and it is difficult to see this as acquiring a right of subrogation against Ra.

Separately from this lawsuit, Shin filed a damages claim lawsuit against Shinhan Bank, alleging that he was unfairly forced to resign from the company by Ra. That case is currently in the second trial.

It has been reported that there is a possibility of a dramatic agreement being reached between the two sides following a mediation session scheduled at 3 p.m. at the Seoul High Court. If Shin and Shinhan Bank agree on wording expressing efforts to restore each other's honor, it is expected that the long-standing dispute lasting over a decade could enter its final stage.

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