Former Democratic Party of Korea lawmaker Kim Nam-kook partially won in the first trial of a damages claim lawsuit against Jang Ye-chan, a former senior member of the People's Power party, who raised allegations regarding his illegal virtual asset (coin) transactions.
Han Un-hee, the judge of the Seoul Southern District Court Civil Affairs Division 3, held a ruling day on the afternoon of the 10th regarding the damages claim lawsuit filed by Kim against Jang and stated, "The defendant shall pay the plaintiff 30 million won in damages," resulting in a partial victory for the plaintiff.
Kim's side initially claimed a compensation of 50 million won when filing the lawsuit, and the court accepted this claim in part. The court stated, "Calculate and pay the rate from May 23, 2023, until this day at 5% annually, and from the following day until the day of full repayment at 12% annually." The litigation expenses will be borne 40% by Kim and 60% by Jang.
The court noted, "While the plaintiff is indeed a public figure, the defendant's remarks can be viewed as malicious and severely reckless attacks that lose their significance as defamation, even if criticism of public officials is widely tolerated. However, it should not be baseless or maliciously slanderous without specific circumstances."
Furthermore, the court added, "The defendant stated facts about the plaintiff with definitive expressions that go beyond the level of allegations raised in media reports. Market manipulation is generally recognized as a criminal act, and the expression that Lee Jae-myung, the representative of the Democratic Party, was involved in market manipulation is only valid when another participant is assumed." The court emphasized that regulations by the Korea Communications Standards Commission prohibit definitive expressions that label someone as a criminal until a verdict is reached.
Jang's side has claimed that the allegations against Kim regarding illegal coin transactions were based on facts revealed in media reports during this trial process. In response, the court stated, "A considerable number of the media reports presented by the defendant were released after the remarks in question and cannot serve as legitimate grounds, nor do they constitute justifiable reasons for the alleged illegality proposed by the defendant."
Regarding the fact that Jang was acquitted of defamation charges related to the allegations against Kim, the court stated, "Although a non-prosecution decision was made in the related criminal case, it does not prevent the establishment of civil liability for illegal acts." The court determined the damages at 30 million won, taking into account the positions of the plaintiff and defendant, the content of the defendant's remarks, and the defendant's attitude after the incident.
Kim's side filed a damages lawsuit for 50 million won, claiming compensation for the damage caused by Jang's dissemination of false facts in September 2023. At that time, Jang posted on his Facebook, raising allegations about Kim's illegal coin transactions, and referred to him as a "criminal" during a radio program.
Meanwhile, Kim was indicted for hiding large profits from virtual asset investments, which amounted to approximately 9.9 billion won, by falsely reporting his assets. The prosecution sought a six-month prison sentence against Kim, who is facing charges of obstruction of official duties by deception, last December.