Shincheonji Leader Lee Man-hee's First Trial Over '7.5 Billion Won Tax Evasion' Begins... Defense Says It Was 'Merely an Omission in Reporting'

[Financial News] The first hearing was held for Lee Man-hee, leader of Shincheonji Church of Jesus, who is accused of evading approximately 7.5 billion won in taxes by concealing profits collected from local churches nationwide. Lee's side denied all seven key issues presented by prosecutors, arguing that there was no intentional concealment, conspiracy, or tax evasion.
The 36th Criminal Division of the Seoul Central District Court, presided over by Judge Lee Jung-yeop, held the first preparatory hearing on the charges against Lee and others, including tax evasion under the Act on the Aggravated Punishment, etc. of Specific Crimes, on the 2nd.
A preparatory hearing is a procedure held before a formal trial to confirm the positions of the defendants and prosecutors and organize the schedule for future proceedings. Defendants are not required to attend. Lee and the other defendants did not appear in court that day.
Prosecutors submitted a summary of seven key issues and requested 11 witnesses, excluding the defendants. They argued that Shincheonji's central organization was the owner of the store profits and the taxpayer liable for them, that the stores were operated under the central organization's instructions and system, and that the defendants had conspired in active concealment attempts after the tax investigation. The amount and timing of the total tax evasion, as well as whether the activities were related to the defendants' duties, were also identified as issues.
Lee's defense team countered, "There was no intentional conspiracy to evade taxes," adding, "The omission of some cash sales from tax reports was merely incidental to the process of bringing unregistered stores into the formal system."
In particular, the defense stated, "Considering the circumstances of the case and the positions of those involved, we believe that the alleged conspiracy has not been sufficiently proven," adding, "We will review the evidence records and organize our position with reference to the prosecution's written opinion."
The court set the next hearing for 10:30 a.m. on December 16 and concluded the proceedings.
Lee and the others are accused of disguising the operation of stores at local churches nationwide under the names of followers and concealing the businesses' profits from 2016 to 2020. According to the investigation, they maintained duplicate store ledgers and diverted cash sales that were difficult to trace. The corporate and value-added taxes allegedly evaded through this method totaled more than 7.57 billion won.
Meanwhile, Lee, who had been detained in a separate case involving alleged violations of the Political Parties Act, was temporarily released after applying for a suspension of detention on health grounds. His release is scheduled to remain in effect until 6 p.m. on the 4th.
[email protected] Reporter Lee Chang-hoon Reporter