Prosecutors Decide Not to Indict Former Supreme Court Justice Cho Jaeyeon over Daejang-dong "That Person" Allegation
by Yeom Dayeon
Published 20 Apr.2026 16:45(KST)
Optimus Lobbying Allegations Against President Lee Dismissed
The prosecution has decided not to indict former Supreme Court Justice Cho Jaeyeon, who was accused of receiving bribes from Kim Manbae, the major shareholder of Hwacheon Daeyu Asset Management, after he was identified as "that person" in the transcripts of private businessmen involved in the Daejang-dong scandal.
According to the legal community on April 20, the Third Anti-Corruption Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Jinyong) issued a non-indictment decision on April 14 in the bribery case against former Justice Cho under the Act on the Aggravated Punishment of Specific Crimes, citing insufficient evidence.
Former Justice Cho was suspected to be "that person" mentioned in the transcripts of Kim Manbae and accountant Jeong Younghak. According to the transcripts, Kim stated, "Everyone knows that Cheonhwa Dongin No. 1 is not mine. Half of it belongs to that person," and went on to say, "That person served as the chief in a trial... That person did everything, so I originally intended to prepare 5 billion won and buy a villa for him." Former Justice Cho was identified as "that person."
A civic group filed a complaint with the Corruption Investigation Office for High-ranking Officials (CIO) against former Justice Cho on bribery charges in February 2022, immediately after the transcript was released. In March of the same year, the CIO referred the case to the prosecution. After more than four years, the prosecution finally rendered a non-indictment decision.
At the time, former Justice Cho strongly denied the allegations, stating, "I do not know Mr. Kim, I have no memory of meeting him, and I do not have his phone number."
Meanwhile, the Third Anti-Corruption Investigation Division also dismissed earlier this month a case in which President Lee Jaemyung was accused of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes in connection with the "Optimus Asset Management lobbying allegations." President Lee was suspected of having received business solicitations from Optimus Asset Management during his tenure as Governor of Gyeonggi Province.
During the investigation of Optimus Asset Management in 2020, media reports indicated that a document titled "Fund Defect Remedy," allegedly authored by former Optimus Asset Management CEO Kim Jaehyun, contained details related to these allegations. President Lee has stated that these claims are "completely fabricated and baseless, something that no one ever said."
The prosecution concluded that the complaint filed by a civic group against President Lee for breach of trust was based on speculation, and closed the case without a substantive review.
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