Fearsome and Toughened Appeals Court: Neither Companies nor Individuals Can Feel Safe

Published 24 Jan.2024 22:28(KST)

Cases of Increased Sentences and Reversed Verdicts in Appeals Court Occur Frequently

Recently, in major criminal appeal cases, there have been consecutive instances where sentences were increased compared to the first trial or where initial acquittals were overturned to convictions, causing tension in the legal community. The atmosphere is spreading that one can never be assured simply because a low sentence such as acquittal or probation was received in the first trial. For a while, criticism of the courts repeatedly handing down “3 years imprisonment, 5 years probation” sentences to business leaders and conglomerate heads, known as the “3.5 fixed-rate sentencing,” disappeared at some point. In response, voices in the legal field say, “Appeals have become more intimidating and severe. The trial is not over until it is truly over.”

[Photo by Beopryul Sinmun]

Former CEO Ahn Yong-chan and other former executives of Aekyung Industrial and SK Chemical, who were acquitted in the first trial on charges of manufacturing and selling harmful humidifier disinfectants, were all convicted in the appeal trial on the 11th. The first trial ruled that it was difficult to prove causality between CMIT·MIT and lung diseases, acquitting all defendants. However, the appeal court recognized the causal relationship between the chemical substances and lung disease, overturned the acquittal, and handed down guilty verdicts. On that day, former CEOs Ahn and Hong were sentenced to four years in prison.

Lee Dong-chae, chairman of EcoPro, who was indicted for illegally gaining about 1.1 billion won through insider trading using undisclosed important information, was sentenced to a heavier prison term than in the first trial and was taken into custody in court during the appeal trial.

These intimidating appeal cases are not limited to corporate criminal cases. Former Democratic Party lawmaker Choi Kang-wook, who was acquitted in the first trial on charges of defaming former Channel A reporter Lee Dong-jae, was fined 10 million won in the appeal trial on the 17th.

Regarding this, a chief judge of a district court said, “Each court independently examines and judges cases with different characteristics, and considering changes in circumstances or new evidence presented, it is natural in a three-tier trial system for verdicts or sentences to be reversed or changed.” However, he analyzed, “In some major cases where sentences are increased, there can be sufficient voices pointing out insufficient first trial hearings or omissions in judgment.”

As cases where acquittals in the first trial are overturned to convictions or sentences are increased in major criminal appeal cases continue to emerge, there are remarks in the legal community that it is frightening to watch appeal verdicts being handed down. Regarding this phenomenon, some view it as a clear example revealing how inadequate first trial hearings have become, while others positively evaluate it as “proof that judges are independently conducting trials,” showing divided opinions.

More Intimidating Appeal Verdicts

[Photo by Beopryul Newspaper]

Former CEO Ahn Yong-chan and other former executives of Aekyung Industrial and SK Chemical, who were indicted for manufacturing and selling harmful humidifier disinfectants and changed from acquittal in the first trial to conviction in the second trial (on the 11th), appeared quite shocked.

In particular, the appeal court pointed out misunderstandings of causality in the first trial. The court stated, “The original judgment misunderstood the indirect and supplementary nature of animal experiment results, which are one of the means to prove causality, overlooked the scientific significance presented by experts who conducted or reviewed the experiments, and failed to properly reflect differences between laboratory environments and actual usage environments, as well as interspecies differences between the test rats and humans, placing excessively high weight only on the quantitative evaluation figures of each experiment.”

Lee Dong-chae, chairman of EcoPro, was taken into custody during the appeal trial. The first trial in October 2022 recognized most of Lee’s charges but sentenced him to 3 years imprisonment with 5 years probation and a fine of 3.5 billion won, citing his return of illegal gains. However, the appeal court sentenced him to 2 years imprisonment, a fine of 2.2 billion won, and confiscation of about 1.1 billion won, stating, “Considering the innocent investors, the crime was not light as it was committed for personal gain,” differing from the first trial’s judgment.

Former Democratic Party lawmaker Choi Kang-wook was fined 10 million won in the appeal trial on the 17th because the appeal court judged that “there was intent to defame and the post distorted public opinion formation.” The first trial in October 2022 acquitted him, stating “there was no intent to defame and it was a matter of public interest.”

Legal Community Points Out “Inadequate First Trial Hearings”

Why are first trial results overturned in the second trial?

A high court judge analyzed, “Since court rulings on corporate criminal cases such as Samsung and Kumho, probation sentences for businesspeople have significantly decreased to the point that criticism called ‘fixed-rate sentencing’ has disappeared in recent years. Also, the spread of work-life balance culture mainly in lower courts may have contributed to inadequate hearings.”

A chief judge of a high court said, “Recently, it is often seen that rulings coming from the first trial in not only criminal but also civil and administrative cases cannot be said to have been thoroughly examined compared to the past. The abolition of the promotion system to chief judge may have lowered judges’ willingness to work, which could be one cause.” He added, “If the current dual personnel system for judges is maintained, this phenomenon will not improve. First trial judges also need to gain experience in the second trial, but the current situation is regrettable.”

On the other hand, a lawyer who formerly served as a first trial presiding judge said, “Basically, sentencing can vary depending on the judge’s values or perspectives on companies and economic realities. Since the appeal trial is the last fact-finding procedure, the judgment of guilt or innocence must be made carefully.” While partially agreeing with the view that “first trials conduct inadequate hearings,” he also explained the difficulties faced by first trial judges. He lamented, “In criminal first trials with a panel, if major corporate case lawyers object to all evidence, all related persons must be summoned as witnesses, which can easily exhaust the court just with witness examinations. It is overwhelming just to organize the facts, so legal reasoning and sentencing parts may be neglected.”