Park Soo-hong Loses 9.8 Billion Won Damages Suit Against His Older Brother and Sister-in-Law; Court Says It Is Difficult to Hold Them Personally Liable

[Financial News] Broadcaster Park Soo-hong, 56, lost a damages suit seeking around 9.8 billion won that he filed against his older brother and his wife. The court found that the couple had embezzled funds from a management company and committed breach of trust, but ruled that there were insufficient grounds for Park to seek damages directly as an individual.
The 12th Civil Division of the Seoul Western District Court, presided over by Judge Kim Jin-young, rejected on the 13th the damages claim Park Soo-hong filed against his older brother, Mr. Park, and his sister-in-law, Ms. Lee.
Park’s side argued that they had agreed to divide the income and assets earned through his entertainment activities with his older brother in a 7-to-3 ratio, and that 70% of the management corporation’s net assets should therefore be paid. The court, however, ruled that the agreement drawn up around July 2020 was only an agreement to divide the liquidation proceeds 7 to 3 if the company was liquidated, and was difficult to interpret as the comprehensive income-and-asset-sharing agreement Park’s side claimed.
The court also rejected the claim that Park’s older brother had embezzled money from Park Soo-hong’s personal account. The evidence was insufficient, given that the charge had resulted in a final acquittal in an earlier criminal trial and that there were indications Park’s father had kept the passbook and withdrawn some of the money.
The court said, “The defendants deserve condemnation for embezzling the corporation’s funds or committing occupational breach of trust and thereby causing the company losses,” but added, “Setting aside the plaintiff’s recovery of losses through the corporation, it is difficult to hold the individual defendants liable.”
Park Soo-hong filed a lawsuit in June 2021 seeking 11.6 billion won, later increased the amount claimed to 19.8 billion won, and ultimately adjusted it to around 9.8 billion won.
In a separate criminal trial, a prison sentence of three years and six months for his older brother, Mr. Park, and a one-year prison sentence suspended for two years for his sister-in-law, Ms. Lee, were finalized.
[email protected] Choi Seung-han Reporter