'Embezzlement of School Funds' Former President In-Su Lee Loses Lawsuit to Overturn Dismissal... "Revocation of Approval Was Lawful"

[Financial News] Former University of Suwon President In-Su Lee, who was convicted of embezzling school funds, filed a lawsuit challenging the cancellation of his executive status but lost the case.
According to the legal community on the 28th, the Seoul Administrative Court’s Administrative Division 4 (Presiding Judge Kim Young-min) ruled against Lee in his lawsuit against the United States Department of Education (ED), which sought to overturn the cancellation of his executive appointment approval.
Lee was prosecuted for using 75 million won of university funds between 2011 and 2013 to cover costs such as employee dismissal lawsuits, condolence expenses, and travel expenses to the United States. In September 2020, he was fined 10 million won.
Under the Private School Act, the United States Department of Education (ED) revoked Lee’s executive appointment approval in 2022, prompting Lee to file a lawsuit seeking to have the decision reversed.
During the trial, Lee argued that the expenses in question had been reimbursed and that the revocation was excessive.
However, the court determined that the United States Department of Education (ED) was justified in canceling Lee’s appointment due to his embezzlement.
The court stated, "Litigation costs do not constitute 'expenses directly necessary for school education,' and Lee should have been well aware that such costs should not be covered by the school’s accounting, which is strictly limited to tuition paid by students. Given that improper acts in accounting and asset management were repeatedly committed over a significant period, the mere fact that the funds were later returned does not render the disciplinary action unlawful."
While serving as president of the University of Suwon from 2012 to 2017, Lee was also indicted for embezzling over 300 million won in university funds for personal legal fees, memorial expenses for the university’s founder, airfare to the United States, and other personal uses. Last year, he received a two-year prison sentence, suspended for three years.
However, the court determined that the cancellation of executive approval for Lee’s spouse, Choi Seo-won, former chairperson of the University of Suwon, should be revoked. Choi had received a suspension of indictment for occupational breach of trust in collusion with Lee.
The court stated, "There is insufficient evidence to recognize that former Chairperson Choi Seo-won conspired with Lee to commit breach of trust, and thus the grounds for the disciplinary action against her are not established."
theknight@fnnews.com Jung Kyung-soo Reporter